Hatteras Networks cuts 20 workers

Telecommunications gear maker Hatteras Networks last week laid off 20 workers -- or one-fourth of its staff -- in anticipation of a downturn in business.

CEO Kevin Sheehan said business is going very well right now -- revenue is on track to double this year -- but it would be "fiscally irresponsible" to assume that the company is insulated from the global financial crisis.

"I think in some way, shape or form, we will be affected by the global recession," he said.

He likened the company's situation to enjoying a sunny day at the beach, then turning on the Weather Channel and finding out that a hurricane is approaching. The responsible move is to take protective measures.

Of the 20 workers that the company let go, including two vice presidents, a dozen were based at the company's Research Triangle Park headquarters. The layoffs leave the company with 60 workers, Sheehan said.

The cuts are the latest to hit a Triangle technology company. Others that have announced plans to eliminate jobs and reduce costs include Sony Ericsson, Nortel Networks, Lenovo, IBM, Lulu.com and Qimonda.

Privately held Hatteras makes equipment that enables telecommunications companies to transmit high-speed data over traditional copper lines. The company was founded in 2000 and has raised $89 million in venture capital to date. It doesn't disclose revenue figures.

Hatteras isn't yet making money, but "these cuts are going to help us tremendously in achieving profitability," Sheehan said. "That's one of the ways of weathering the storm, so to speak."

Sheehan said the cutbacks weren't ordered or requested by Hatteras' investors.

"This was a proactive measure initiated by my executive team," he said.

The company isn't disclosing how much cash it has, but Sheehan said the company has no need to raise additional financing soon.

This isn't the first time that the company has cut jobs. In 2001, when technology spending nose-dived, the company laid off nearly half its staff.

"Back then, we weren't really a mature company with stable revenues and a strong customer base," Sheehan said. "Today it's kind of a night and day difference where we have over 100 customers on six continents using our products."

The job cuts were "across the board in all all departments so we didn't lose any critical mass in any one area," he said. "We still have a great team."