Hatteras prepares for telecom hurricane, cuts jobs

For those who survived the telecom industry's nuclear winter earlier this decade and are expecting another downturn, the meterological analogy of choice may become the hurricane. That's the analogy that Hatteras Network CEO Kevein Sheehan used in explaining why the mid-band Ethernet vendor decided to cut 25 percent of its workforce (about 20 jobs), despite enjoying a strong third quarter and still envisioning a strong fourth quarter.

Ironically, the chief of a company named for a location in North Carolina that has seen its share of hurricanes, described the industry now as potentially similar to how Galveston, Tex., looked before the day before Hurricane Ike swept in earlier this fall--in short, everything seemed quiet, but the forecast indicated devastation on the way. Will we all be looking back on the Telecom Hurricane of 2009 in a few years? Though carriers have continued to produce solid financials, there is a growing fear that macro-economic woes are starting to catch up. Some observers have started saying things will be very bad within six to nine months. Hatteras is preparing for the storm, and so did Orckit recently, similarly cutting jobs as a pre-emptive move. Who will be next?

For more:
- Telephony has this report
- Light Reading has this article

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