Spike Broadband Restructures
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Spike Broadband Systems, a Nashua, N.H., provider of fixed-wireless broadband access, has laid off 40 workers, about 20 percent of its staff, in a bid to turn a profit.
Affected employees will receive severance pay, help finding a new job and an extension of their stock option exercise period.
Company executives did their best to put a positive spin on the news, saying it will leave them well-positioned for the future.
"Unlike some in our market who are struggling to survive, Spike has initiated these actions as a catalyst for our continued success," Spike chairman and CEO Jim Zucco, said in a statement. "These are challenging economic times, and we are not happy that our restructuring efforts had to include a reduction in force."
Newly arrived CFO Michael El-Hillow, said the company will be "guided by sound and prudence financial processes."
Six-year-old Spike Broadband is privately held and has raised about $80 million in venture capital financing. Backers include: CDP Sofinov, Sandler Capital Management, Cabletron Systems, US Bancorp Piper Jaffray and Dain Rauscher Venture Partners.