Metawave slashes staff by 30%, changes CEO

Metawave Communications announced a restructuring that includes a significant round of layoffs and a new CEO.

Gary Flood, Metawave’s Chief operating officer, will take the helm as chief executive, effective immediately. He replaces Bob Hunsberger, who will remain at Metawave as Chairman and strategic adviser to the company.

The company, which produces smart antenna products, also said that, effective yesterday, it cut about 30% of its workforce. At the end of the second quarter the company employed about 120 people.

“We are sizing the company to fit the wireless market right now. Demand is weak and you have to make accommodations for that,” said a Metawave spokeswoman.

Metawave, which moved to the Nasdaq SmallCap market in mid-August, was trading down two cents to nine cents in mid-afternoon trading. The company has until October 28, to lift its share price to above $1 for 10 consecutive trading days or face a delisting hearing.

For the quarter ending June 30, the company posted revenues of $4.2 million, down $2 million sequentially. The company’s third quarter earnings call is scheduled for October 22.