Internap Cuts 10% Of Workforce, About 45 Positions
Late last night, Internap announced it will implement a restructuring program to reduce their headcount by about 45 employees in an effort to reduce their operating costs. The company does not say when the reductions will be completed but says that when finalized, they expect to save about $5M in annualized operating expenses.
These cuts come as no surprise since new President and CEO Eric Cooney is now running the ship and it's not uncommon for changes like this to take place with new management. Eric said the cuts were needed to "better prepare the company to manage through a tough economy, improve results and increase value for customers and shareholders." While it's a prudent move to help try and get Internap back on track, I think what investors are really waiting to hear about is Internap's strategy, product road map and plans to increase revenue growth. While Eric has only been on board for a short time, I expect that before too long the company will present their new strategy to the market and we'll hear more news on what direction Eric is looking to take the company.