Posted by: Dave Raffo
A week that started happily for Brocade will end with pink slips.
Brocade’s OEM deal with IBM for its Foundry switches won’t save the company from laying off a chunk of its workforce. Brocade today confirmed it made its first workforce reduction since the company acquired Foundry for $2.6 billion last year.
Brocade spokesman John Noh confirmed the cuts, but said the RIF was more of a re-alignment than a layoff.
“Brocade has made some personnel changes to better align our talent with our go-forward strategy,” he said. “These decisions are designed to leverage the significant growth opportunities available.”
The cuts fell more heavily on the Fibre Channel side than on the Foundry Ethernet group. Brocade grew from 2,834 employees at the end of October to 3,950 at the end of January following the Foundry acquisition. Noh said the current reduction impacted less than 5% of the company.