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Managed service provider Loudcloud, hoping to slash its $35 million-per-quarter cash-burn rate, late Friday afternoon sacked an undisclosed number of people as part of anticipated reorganization.
Executives said the firings were a necessary part of the reorganization of several divisions. The company also shifted some executive responsibilities as it sets out to cut its quarterly losses to between $18 million and $20 million by the second quarter of next year. Loudcloud also said it will hire new workers to gain efficiencies in key areas.
Company executives refused to say how many people were laid off or how many will be hired, but did say that with the changes already made Loudcloud may be able to reach its financial goals.
“Right now, we are not planning anything else,” said Marlena Fernandez, Loudcloud director of corporate communications. “None of the senior executives have left.”
Some of their responsibilities did change, though. Chief Marketing Officer and Executive Vice President of Sales Shellye Archambeau now will oversee Loudcloud Customer Solutions. That group researches new customer opportunities.
Wade Chambers, general manager of engineering, has been put in charge of all software projects including crucial Opsware projects. He reports to Vice President of Product Operations Tim Howes. Opsware is the automation software that lets Loudcloud turn customers into profits quickly by using fewer engineers to provision new services.
Loudcloud recently entered into a long-term partnership with Qwest Communications.