The deathwatch for long-suffering StorageNetworks Inc. (Nasdaq: STOR) is finally over. The company said today that it has laid off most of its staff as it awaits liquidation (see StorageNetworks Liquidates Itself).
The Waltham, Mass., company announced today that its board has approved its liquidation, and that it would maintain only a small transition team to oversee the winding down of the business. The company also said that its president and CEO, Paul Flanagan, left the company today but will remain on the board of directors until the liquidation process is completed.
StorageNetworks will file a proxy statement seeking its shareholders approval of the plan and expects to complete the liquidation within 20 days of that approval.
The announcement, which accompanied the companys second-quarter results today, was hardly a surprise. StorageNetworks has been steadily shrinking over the past two years. Last month, the company announced that it was finally exiting the ailing managed storage services business, after dropping the storage resource management (SRM) software side of its business at the beginning of the year (see StorageNetworks Ditches Services Biz and StorageNetworks Hacks Self in Half).
And as StorageNetworks business has declined, so has its headcount. From its summit of 670 employees in mid-2001, the company has continuously chopped heads. After StorageNetworks trimmed 35 percent of its staff last month, it had 60 employees left on its payroll (see StorageNetworks Continues to Shrivel and StorageNetworks: Big Layoff).