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BroadSoft, a Gaithersburg, Md.,-based VoIP application platform maker, has cut about a dozen positions, according to a source familiar with the company. The cuts are said to have taken place in its sales, product management and engineering divisions, in both the Americas and the EMEA region. BroadSoft had about 300 employees, so a dozen cuts represents a fairly small percentage. What’s significant is the reasons behind them — sales have started to slow, not just for BroadSoft but for other vendors as well.
Updated: Leslie Ferry, Vice President of Marketing at BroadSoft did confirm that the company had some cuts though she didn’t reveal the exact numbers. She indicated that the company was on track to grow both revenues and margins going forward. Meanwhile, other reports have come in saying that the cuts might be deeper than reported earlier.
Nearly 10 years old, privately held BroadSoft counts some of world’s largest telecom operators among its customers. The company is estimated to have logged around $60 million in revenues last year and was said to have broken even. It recently acquired the M6 application server business from GENBAND, expressing high hopes for the future. It seems the economy has stopped BroadSoft in its tracks. Notably, Cisco Systems just last week said it planned to shut down its broadband telephony business in Texas, a sign that the demand for VoIP-related hardware might be maturing, too.