Cary-based communications firm Connexion lays off 'about 80'
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Connexion Technologies, a provider of communications technology for residential communities across much of the United States, laid off some 14 percent of its work force on Thursday.
Matt Springer, executive vice president for corporate development at the Cary-based firm, confirmed the cuts on Friday. He said “about 80” people were affected out of a work force of “almost 600.”
“We lost some senior people,” Springer said. He described the layoffs as “very painful.”
“I lost some very good friends,” he added.
The layoffs included full-time and part-time people who were involved in construction and engineering focused on use of fiber-optic technology, Springer said. The affected workers received severance packages, he added.
In recent weeks Connexion also laid off “some” temporary employees, Springer said.
Founded in 2002 by former Cary Mayor Glen Lang, Connexion works with partners such as satellite, cable and telecommunications firms to deliver video and data services. Its backers include Jim Goodnight, founder and CEO of Cary-based SAS. Goodnight is an investor through an investment firm.
The layoffs were made due to Connexion’s decision to “move in a slightly different direction” in technology, Springer said.
Connexion is embracing wireless delivery of video and data in partnership with such firms as DirecTV and DISH and other customers, Springer explained.
The decision means that Connexion won’t rely as much on fiber which “requires more robust construction.” He called the wireless solution “much less capital intensive.”
Because of all the changes, Connexion “requires a different skill set,” meaning people who had years of construction and engineering experience related to fiber “were not what we generally need” going forward.
Asked about the financial state of the company, Springer said, “We’re in very good shape.” Pointing out that Connexion continues to grow, he added: “We have strong support from our investors.”
Connexion made the Inc magazine 500 in 2010 as one of the nation’s fastest growing company and the Inc 5000 list in 2011.
In the 2011 list, Connexion was reported to have $30 million in revenue for 2010 and a 263 percent rate of growth over three years, Its headcount stood at 612, nearly doubling from 314 over that three-year period.
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