Brief: StorageNetworks to cut 25% of staff

Once-highflying StorageNetworks Inc. suffered another downturn in business and this week announced that it would reduce its head count by 25%.

The Waltham, Mass.-based company, formerly a storage service provider (SSP), is now transforming itself into a software management company.

Like other SSPs-turned-software-vendors -- including Storability Inc., CreekPath Systems Inc. and Arsenal Digital Solutions -- StorageNetworks has found that the storage management market is a tough sell in this economic downturn. Storability and Arsenal Digital also laid off staff in the past year.

Storability just announced a new version of its storage software, called the Global Storage Manager, which it hopes will reverse the company's slide.

After the layoffs, StorageNetworks will have 215 employees. These head count reductions follow a 23% workforce reduction last May and a 33% layoff in July 2001. StorageNetworks has no new products pending, said observers.

This story, "Brief: StorageNetworks to cut 25% of staff" was originally published by Network World.

Copyright © 2002 IDG Communications, Inc.

  
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