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Job cuts at VoIP startup Kagoor Networks

Company cut 20 of 70 jobs as sales, which began 6 months ago, proved slower than expected, says CEO

California-Israeli startup Kagoor Networks has fired 20 of its 70 employees, has learned.

Company CEO Ovad Harari confirmed the job cuts, which he said encompassed all divisions.

Harari said the purpose of the cutbacks is to reduce cash-burn while sustaining sales and development.

He said sales commenced six months ago, but have proved more sluggish than predicted due to the global economic slowdown.

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The company's flagship product, VoiceFlow, is a platform to quickly process data in order to improve VoIP communications.

Established in 2000, Kagoor is based in Herzliya and San Mateo, California. It has raised $20 million financing to date. In October 2000 it secured $16 million at a post-money company value of $57 million. Its backers include Intel Capital, Vantage Point, ComVentures and Singapore company TDF.

On October 1, Kagoor announced an alliance with Israeli firm Vocaltec (Nasdaq:VOCL) to deliver quality of service-enhanced VoIP solutions. VocalTec's solutions, deployed in VoIP networks, will be combined with Kagoor's VoiceFlow, the company said.