The board of directors at Orange-based IT expense management firm Tangoe has approved “an efficiency and cost reduction initiative,” which translates as a 10 percent workforce reduction and the closing of unspecified “underutilized facilities.”
As a result of the move, most of which is expected to be completed by the end of June, the company expects to incur total cash charges of approximately $3.6 million.
It noted that additional cost reduction moves will occur by year’s end.
The developments come after Tangoe’s June 13 announcement that it had finalized its acquisition of Vodafone”™s existing telecom expense management (TEM) technology, with a majority of Vodafone”™s TEM employees being transferred to Tangoe.
In May, Al Subbloie resigned from his position as Tangoe’s chairman and CEO; independent director James Foy was named interim CEO. In April, the board asked Chief Financial Officer Gary Martino to resign, naming Jay Zager, former executive vice president and CFO of Axcelis Technologies, as its interim CFO.
In March, the company announced that it would restate its financial statements for the years 2013 and 2014, all quarters therein, and the first three quarters of 2015, and that investors should no longer rely upon the its previously released financial statements for these time periods and all related reports and communications.
