Shortly after Enterasys Networks announced plans to cut its workforce in early April, Aprisma Management Technologies followed suit and quietly initiated its own round of layoffs, which will affect 15 per cent of its workforce.
News has also emerged that Enterasys, Aprisma's parent company, which is under investigation by the US Securities and Exchange Commission, dipped into Aprisma's cash. According to an Aprisma spokesman: "Aprisma is a majority-owned subsidiary of Enterasys. Enterasys transferred $US70 million cash from Aprisma in order to strengthen its balance sheet. Aprisma's balance sheet shows a remaining $US10 million with no long-term debt. Aprisma's cash position has not raised any concern with our auditors, nor does it affect the viability of Aprisma as a going concern."
Aprisma is currently in the process of letting go approximately 15 per cent, or 65 individuals, from its workforce. "The restructuring began on April 12 and is anticipated to be completed by the end of April," the Aprisma spokesman said.
Enterasys and Aprisma, the network management software maker of the now defunct Cabletron, were two of four companies that were spun out of parent Cabletron in early 2000.
Hard times at Enterasys
Last month, Enterasys announced it would reduce its staff by 30 per cent as part of a restructuring that would leave the company with about 1,700 employees. The Enterasys job cuts followed news that the company was under investigation by the SEC. The company allegedly revised its fourth-quarter 2001 books after discovering that two versions of a $US4 million contract were drafted for a sale: one version for the auditors and one for everyone else.
A few Enterasys executives jumped ship following news about the SEC investigation, including Enrique Fiallo, former chairman, CEO and president. However, until now, Aprisma seemed only slighted affected by its parent's hard times.