Clarent job cull continues

350 more to go at struggling internet-telephony equipment manufacturer...

350 more to go at struggling internet-telephony equipment manufacturer...

Clarent has issued a profit warning and laid off 50 per cent of its workforce. The announcement follows the recent halt in trading of the company's shares on Nasdaq after Clarent executives revealed that it might have overstated revenues earlier this year. The company's technology, which allows people to make calls over the net, has released 350 employees. Clarent will also cut revenue expectations for its third quarter by more than half. The company now expects third-quarter revenue to reach $17m to $18m, significantly below the previous predictions of $40m to $43m. The company has been hit by the economic slowdown this year, resulting in ongoing corporate restructuring that has included layoffs and executive turnover. In May, Clarent laid off 10 per cent of its staff after reporting a first quarter loss of $2.1m. The company laid off a further 27 per cent of its workforce in July after announcing a second-quarter loss of $9.6m. In the midst of the announcement, five leading executives resigned from the company this week.