Facetime struggles to avoid faceplantA week after landing a case study on the New York Times tech page, workplace monitoring toolmaker FaceTime has sent home an unspecified number of staff. Here's the standard Tough Times, Tough Decisions email from CEO Kailash Ambwani:
Dear Team: As you're all aware, Facetime had to say goodbye to a large number of team members earlier today. This action was taken in response to the very tough economic times the world is currently facing. In order to keep the Company moving forward, we are reducing our operating expenses by ~30%. The size of the reduction reflects our view of current market conditions. This is a large reduction in force and one that, I am sure, affects all of us. None of these decisions were easy - we have a close-knit, hard working, committed team and I am sad that we had to take these actions. While I continue to be optimistic and excited about our market opportunity - UC and presence will be the dominant communications platform in the enterprise - we have to operate based on the current market environment. As you know, financial services constitute the biggest segment of our customer base and these companies are under severe pressure to reduce costs. We are even seeing companies outside of the financial services market hold off on major projects. In Q4, we saw several large deals get delayed, downsized, or, in some cases canceled at the last minute. In planning for FY09, we have taken an extremely conservative view: Assume 09 will be flat with 08 and ensure our expense level allows us to manage through the period and come out strong. While we cannot predict or control the economy, we can ensure that we're positioned to survive a "worst-case" scenario and to profit from any "upside". In other words, hope for the best but prepare for the worst. This is what we have done. I want to reiterate that we are addressing an exciting market opportunity. Q4 marked the highest level of opportunity generation in FaceTime's history - evidence that UC deployments are starting to happen. Although I am concerned that enterprises will delay these projects due to market conditions, I am confident that as the leader, we are ideally positioned to benefit once conditions improve. Moving forward, we must stay focused on providing the highest level of customer service; continuing to innovate and widen our technology lead, and ensuring that we leave no opportunity unaddressed. Now is the time to sharpen our focus and redouble our efforts. I know I can count on your continuing commitment and hard-work. Thank you and please do not hesitate to contact me should you have any questions or comments. Kailash ———————————————- FaceTime Communications Kailash Ambwani President and CEO