SearchStorage has learned from two people identifying themselves as now former Connex, Inc. employees that the San Jose, Calif.-based maker of network-attached storage (NAS) devices has laid-off more than 100 people on Thursday.
A Connex senior executive contacted by searchStorage did not deny the report, but would not comment further.
Connex is owned by Irvine, Calif.-based Western Digital.
According to the sources who asked not to be identified, the layoffs were a shock to many employees.
Most of the company's sales force, marketing and engineering employees devoted to the company's network-attached storage (NAS) product line were let go, according to the source. "They laid everybody off except for the president and head managers," the source said.
The official layoff announcement, expected to occur today, was precipitated by early talk among the Connex workforce about upcoming layoffs. "They had people cleaning out their desks yesterday," said the source.
The source added that the layoffs may be the result of technology delays and Connex's inability to meet its goal of an IPO by the end of this year. "When Western Digital bought Connex, they gave them until the end of this year to go IPO and it didn't happen." There has been speculation that Connex may be planning to continue selling the company's SANavigator storage management software directly to Fortune 100 companies while forfeiting its NAS line.
In light of Western Digital's recent stock performance (the company hit a 52-week low on Monday) the company had decided on a number of moves to improve future earnings. The latest Connex move was apparently among them, the source said.
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