SAN JOSE, Calif.-Embattled high-speed wireless data service company Metricom Inc. said it plans to lay off approximately 23 percent of its work force in hopes of preserving its rapidly dwindling cash balance beyond the summer.
“The continued focus on marketing and operating in our existing 15 markets, coupled with a strategic shift away from rapid widespread deployment, has significantly changed our staffing needs,” said Ralph Derrickson, interim chief executive officer of Metricom. “Further, our critical need to conserve cash to continue our operations beyond August has led to this reduction in force.”
Earlier this year the company laid off 179 employees and announced the resignation of chief financial officer James Wall following an internal audit casting doubt on its ability to survive beyond August without additional financing. Following the current staff cuts, Metricom said it would have 451 employees worldwide.
Metricom’s stock, which traded close to $50 per share a year ago, has fallen to less than $2 per share.
“The steps reflect in part the changed dynamics in the capital markets,” Derrickson explained. “We have a responsibility to our employees, partners and investors and recognize the need to manage expenses aggressively. We continue to investigate our strategic options to support the company’s future plans.”
