Merger partners Floware Wireless Systems and Breezecom announced Wednesday that they would cut 15 percent of their combined staffs in response to a slowing market for fixed wireless equipment. The Israel-based companies, which announced merger plans in April, will lay off a total of about 110 people across all divisions, leaving 670 employees.
The companies make equipment that transmits high-speed data from one location to several. A recent study by the Dell'Oro Group indicates that the market for such gear shrank 35 percent in the first quarter of 2001 compared to the fourth quarter of 2000. The research also showed that Breezecom and Floware finished in the top three in sales, with France-based Alcatel leading the pack. The companies' shareholders will vote on the merger July 30, and they will jointly release second quarter earnings July 26.