StorageNetworks, a Massachusetts-based storage management software and service provider, isn't faring too well in today's economy. The company announced plans to reduce its workforce by 50 percent and announced the departure of its president and CEO, Peter Bell, a cofounder of the company. The staff reduction will bring total staff to approximately 110 employees. The layoffs come in addition to the cutting of 80 jobs last October. Paul Flanagan, StorageNetworks' chief operating officer (COO) and former chief financial officer (CFO), will assume the role of president and CEO.

In recent years, StorageNetworks changed its focus from selling storage as a service to becoming an infrastructure vendor for mainstream service providers; more recently, the company has evolved into a storage resource management software developer. The company hopes the announced round of staff reductions will help it survive the industry's current sales slump. The company's stock, which traded for as high as $138 in July 2000, closed at around a dollar last week.

Electronic Data Systems (EDS) is one of StorageNetworks' largest customers. EDS has affirmed its commitment to continue its relationship with StorageNetworks and denied commenting about rumors that it would buy StorageNetworks to integrate into EDS's technology department.
http://www.storagenetworks.com


StorageNetworks, a Massachusetts-based storage management software and service provider, isn't faring too well in today's economy. The company announced plans to reduce its workforce by 50 percent and announced the departure of its president and CEO, Peter Bell, a cofounder of the company. The staff reduction will bring total staff to approximately 110 employees. The layoffs come in addition to the cutting of 80 jobs last October. Paul Flanagan, StorageNetworks' chief operating officer (COO) and former chief financial officer (CFO), will assume the role of president and CEO.

In recent years, StorageNetworks changed its focus from selling storage as a service to becoming an infrastructure vendor for mainstream service providers; more recently, the company has evolved into a storage resource management software developer. The company hopes the announced round of staff reductions will help it survive the industry's current sales slump. The company's stock, which traded for as high as $138 in July 2000, closed at around a dollar last week.

Electronic Data Systems (EDS) is one of StorageNetworks' largest customers. EDS has affirmed its commitment to continue its relationship with StorageNetworks and denied commenting about rumors that it would buy StorageNetworks to integrate into EDS's technology department.
http://www.storagenetworks.com