More Layoffs At Jamcracker; Management Restructures

Jamcracker is reducing its staff to less than 100, from a high of about 220, in a fourth round of layoffs.

The layoffs are part of a restructuring that began last Tuesday, said Todd Johnson, former senior vice president of Jamcracker's platform business.

Johnson is now in charge of day-to-day operations as president of Jamcracker. K.B. Chandrasekhar remains on as chairman and CEO, while CFO Herald Chen remains in his post and will report to Chandrasekhar. Chandrasekhar will also maintain responsibility for his administration functions, said Johnson.

"[Chandrasekhar] is involved seven days a week and is not going away," said Johnson, addressing rumors of Chandrasekhar's possible departure. Chandrasekhar founded Exodus Communications, leaving later to form Jamcracker.

As to concerns about Jamcracker's cash burn rate, Johnson said partners and customers need not worry about Jamcracker's cash position.

"I wouldn't worry about us running out of cash," he said. "We are not worried about managing our company moving forward and engaging new customers. We are working on a number of issues to reduce our cash burn rate."

Johnson said the layoffs in part were a result of delayed projects, one of which was the potential of packaging a licensed version of its XML-based enterprise application platform.

Jamcracker has abandoned those plans for now and will stick to its strategy of selling its platform and services to enterprise customers and relying on partners to sell and deploy the product and ASP services to the SMB market.

Staffs supporting customers and partners were not impacted by the layoff, he said.

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