DragonWave woes grow following job cuts

by Andrew Roach on April 11, 2013

It’s not been an easy 12 months for telecom equipment manufacturer DragonWave who have experienced a host of financial and structural problems besetting the company.

Now, the Ottawa based firm has moved to cut more jobs as a third of the senior management positions within the company are cut in a massive re-structure within the company.

On top of that, DragonWave have also moved to re-negotiate their deal with Nokia Siemens over microwave products for mobile devices.

The move is aimed to try and reduce operating costs down and try to help the company from falling into a downward spiral from which they might not recover from.

DragonWave’s latest announcement has now targeted some of the more experienced members within the company as they cut down on senior positions higher up.

So much so that 33% of managers will lose their jobs in the shake up to help keep the company costs down in the long run.

This move follows a similar decision made by DragonWave last year to cut 116 jobs from their two sites in Ottawa and Israel.

Many of their problems can be linked back to June last year when the company took on Nokia Siemens microwave technology as well as their own products.

However, the partnership between the two has also been re-worked to help cut costs on the Canadian company’s behalf.

In the deal, Nokia will take on some more services to ease the burden and costs that have risen over the past year.

However, it means that the European technology giants will no longer give research and development aid to DragonWave in the near future.

The deal will also require Nokia Siemens to pay the Ottawa manufacturer $13.8m which will also clear any last debts that remained between the two parties.

Hopefully, all the changes are expected to cut costs dramatically with DragonWave estimating that they will save around €3 million per quarter.

It might seem a difficult path that DragonWave are walking on at the moment but the cuts are necessary to ensure the survival of the company who are looking to avoid becoming the next big Canadian technology firm to fall in to the financial black hole and never return.

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Written by: Andrew Roach www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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