Mobile & Wireless

Alvarion to cut 11% of its workforce

Declining economy takes its toll on mobile WiMAX market

by Sam Bookman

The effects of the global economic slump continues to have an effect on the telecom market, including the WiMAX wireless segment. Israel-based WiMAX player Alvarion announced that it will cut 11 percent of its workforce by the end of 2008 in an effort to maintain profitability throughout 2009. WiMAX Trends reports that the company will also slash management salaries and implement other cost-saving measures to recoup US$15 million in annual costs.

The slowing economy has definitely had an impact on Alvarion's bottom line. Delayed projects, slowed-down deployments by existing customers, and longer sales cycles are all contributing factors, the company explained. Additionally, greenfield WiMAX deployments are having difficulty raising funds.

Alvarion, which employs about 1,000 people, is not the only WiMAX and broadband wireless supplier scaling back this season: Aperto and Redline have also announced plans to reorganize and cut expenditures.

Redline announced Dec. 3 that it will be reducing its workforce — the company didn't say by how much — and cutting executive compensation by 10 percent as well as changing sales and marketing strategies for its mobile WiMAX products. Redline reported a third-quarter net loss this year of US$6.17 million.

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