Troubled networking vendor Enterasys has axed 30 per cent of its workforce, around 730 people, in a bid to return to profitability, but has also lost several members of its executive management team.
Over the past week the firm has seen three senior staff members resign: chief executive Henry Fiallo, vice-chairman JE Riddle, and chief operating officer Jerry Shanahan.
The resignations follow a US Securities and Exchange Commission (SEC) investigation into the company's accounting practices.
Due to the SEC investigation, Enterasys had to delay the release of its fourth-quarter 2001 figures. A company representative said it will release these, along with its Q1 figures, "as soon as practicable".
Enterasys is predicting the figures will be "lower than expected".
Clive Longbottom, service director at analyst firm Quocirca, said Enterasys has serious problems.
"Getting rid of its workforce is an indication of problems within an organisation, and is part of a downward spiral. Customers see it as clutching at straws and choose not to do business with them," he said.
"Although Enterasys has a lot of accounts out there, they are not big-margin earners."
Separately, enterprise networking vendor Avaya has revealed that its UK managing director is to leave in June.
John Winchester, who has been with the company for over four years, is leaving to spend time with his young family.
"I have had an eventful time at Avaya, seeing our business model change from direct to multi-channel, and also our business transition from Lucent to Avaya. But I feel the time is right to make a personal decision to spend more time with my children," he said.
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