Vonage (VG) changed its CEO and said it would slash $140 million in costs through firings and reduced marketing efforts.
The Holmdel, N.J., Internet telco said its chairman and founder, Jeffrey Citron, will replace Mike Snyder as CEO. The news comes a month after Vonage lost a key patent infringement case with Verizon (VZ), saddling the money-losing company with hefty damages in addition to steep legal bills. A judge subsequently ruled Vonage wouldn't be allowed to seek new customers, though the company won a stay on that order and faces a hearing later this month. "Mike has made valuable contributions to the growth of our business and we will miss him," Citron said. "We thank him and wish him well in his future endeavors." Vonage said it expects to post revenue of $195 million for the first quarter, shy of the $197 million Thomson Financial target. The company said it will cut costs by $30 million through workforce reduction and consolidation, and trim marketing expense by $110 million.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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