Interesting article: Cash-rich Eftia announces layoffs
Tuesday 15 August 2000
Cash-rich Eftia announces layoffs
Restructuring not a sign of trouble, Ottawa
software company says
Bert Hill
The Ottawa Citizen
Eftia OSS Solutions, one of Ottawa most richly financed new
technology companies, is laying off people.
Eftia, which landed $30 million U.S. in new capital last
month, said it has dismissed about 40 employees in the last few
weeks as it retools operations.
Marketing vice-president Karna Gupta said the action is not
a sign of financial troubles but part of six-month-old strategy
to become a product-based company.
Still, the layoffs are a change of pace for a company which
renovated a former centretown government office building to
include a gymnasium, massage centre and other facilities that
help retain scarce talent.
Despite the cuts, Mr. Gupta said total employment has grown,
reaching 500 around the world, including 400 in Ottawa.
There was an earlier round of cuts in February predominately
affecting contract employees.
Fast-growing Eftia had just 16 employees 30 months ago.
"We need different sets of skills than when we were
customizing products for customers," Mr. Gupta said.
He said the cuts involved a variety of jobs including sales,
marketing and professional services.
Last month, Eftia announced it had received the latest stage
of $67 million U.S. in venture capital funding. Its previous
major round in 1999 set a record at the time for Ottawa
technology companies.
Eftia makes operations support software for major
telecommunications companies. It allows phone companies,
particularly the new generation of competitive carriers, to
measure performance in delivering service to customers and
to automate backoffice functions.
Eftia recently introduced a new product that supports
high-bandwidth digital subscriber line services.
It recently selected new chief operating and financial officers.
Al-Karim Somji, who co-founded the company, is now
chairman and chief executive. |
