Loudcloud slashes 122 jobs, moves to curb spending

Less than two months after going public, Internet infrastructure provider Loudcloud announced it would slash 19% of its workforce and curb spending in other areas to reach breakeven with existing cash levels.

The cuts reduce the company’s headcount by 122 employees, bringing the new total to 507. In a conference call to investors, Loudcloud executives said the move was aimed at focusing on sales and R&D efforts and continuing its commitment toward using automated Web-site-maintenance technology to execute tasks ordinarily performed by humans.

“We have reviewed very carefully all of the reductions by specific functional area so that we are adequately staffing areas that are critical to our continued growth and development,” said Rod Sherwood, executive vice president and chief financial officer. “We are confident that the changes we are implementing today will not impact our ability to serve customers effectively.”

Loudcloud also announced yesterday two new hires to its senior management team. John O’Farrell was tapped to fill the newly created position of executive vice president of business development, while Shellye Archambeau was named chief marketing officer.

Before joining Loudcloud, O’Farrell was executive vice president of international operations at Excite@Home. Archambeau previously served as chief marketing officer at now-defunct independent DSL provider NorthPoint.

Founded by Netscape founder Marc Andreessen, Loudcloud’s IPO in early March received a moderate Wall Street reception as it brought in a less-than-expected $150 million. First sold at $6, shares were at $5.28 in mid-day trading today.