April 10, 2013 / 10:50 AM / in 5 years

DragonWave cuts 33 pct jobs, amends deal with Nokia Siemens

April 10 (Reuters) - Telecom network equipment maker DragonWave Inc said it cut 33 percent of its senior management jobs and amended its deal with Nokia Siemens Networks to reduce operating costs.

Cash-strapped DragonWave, which has been trying to cut costs since it acquired Nokia Siemens’s microwave technology business last June, said last month that it would cut costs further but did not specify what the measures were.

According to the renewed deal, Nokia Siemens will make an immediate cash payment of 10.6 million euros ($13.8 million) to DragonWave, clearing the contingent receivable on the Ottawa-based company’s balance sheet.

DragonWave said the companies have ended the Italian services agreement, under which Nokia Siemens provided research and development and certain other services to DragonWave since June 2012.

DragonWave expects operating costs to fall by about 3 million euros per quarter.

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