The revolving door at Cereva Networks Inc. took another spin this week, as the company laid off an additional 20 employees, reducing its headcount to 150.
The layoff comes in the wake on ongoing executive changes at the company (see Cereva Exec Churn Continues). It is the second major reduction this year and represents a cut of about 40 percent from staffing levels in May 2001, when the startup made its first job cuts (see Cereva: Stalled, Not Stopped).
The most notable departure from the storage switch startup was head of corporate communications Bruce MacDonald, who had been with Cereva since its founding.
Unfortunately, being one of the first employees isnt necessarily a good thing at Cereva these days, as the new management team, led by CEO Mahesh Ganmukhi, blames the old team for hyping Cerevas plans long before the company was even close to announcing its product.
Snafus, such as the premature (and ultimately unfounded) declaration that GiantLoop Network Inc. was a beta tester, led to extremely high expectations. And the company had little to show its investors when it went for a second round of funding in the summer. It took Cereva until late September to close that round (see Cereva Gets $50M Funding). Subsequently, the company saw the departure of CFO Brian Cohen as well as the head of sales (see Cereva Skids to a Halt and Cereva's Back on Track).