has just fired half its staff, TheMarker.com has learned. Tundo let go 40 people, half its workforce in Israel.
Tundo first trimmed a third of its staff, including 20 people at its Boston facility, and closed its Dutch center in January this year. About 100 people remained, mostly at its R&D center in Netanya. Tundo, founded in 1998 by President and CEO Eitan Baruch and CTO Pinchas Ziv, provides Internet-protocol telephony solutions. It maintains offices in Boston, Massachusetts and in Singapore.
Back in April 2000, Tundo had secured $30 million financing at a company value of $120 million. It hoped to hold another private placement but held back as its value started to plummet. A rumor has been circulating that Tundo is about to collapse as investors scrabble to get back as much cash as possible.
Like many companies, Tundo invested major resources in trying to beat the competition in developing advanced data communications solutions. But its market has failed to develop as anticipated.
Tundo isn't about to pull the plug before it tries the option of seriously cutting costs. But its ultimate demise is not an impossible scenario.
No comment could be obtained from the company.