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Cabletron parts out GNTS unit

Mon, 07/16/2001 - 8:00pm
Anne Kerven

A week after re-outlining its spinoff plans, Cabletron will part out its GlobalNetwork Technology Services unit, and cut an unspecified number of jobs.

GNTS was Cabletron's network infrastructure consulting unit. Its outsourcing operations and parts of its operational and installation services will be sold to a private buyout firm with a group of present GNTS management.

Financial terms and the buyer's name won't be disclosed until the deal is complete, sometime over the next few weeks, spokeswoman Kristen Sheppard says.

Further, GNTS' small enterprise consulting service is being sold to Enterasys Networks Inc., another Cabletron spinoff, also for an undisclosed amount. The network management consulting practice will go to Aprisma Management Technologies, another subsidiary. Finally, GNTS says it will "conduct a reduction in force affecting the remaining workforce."

The company employs 350 worldwide, Sheppard says, with 150 in the United States. She woudn't say how many jobs would be cut or from where — some employees will go with the acquisitions; the rest would be laid off, she says, adding that the cuts are no surprise. The company had outlined the changes in its fourth-quarter earnings call in March and reiterated it through the past several months.

Last week, Cabletron said it would finish its spinoff of Riverstone Networks and launch Enterasys as a public company by Aug. 6.

Cabletron, a holding company for networking and telecom firms, announced in February 2000 its intent to form four independent operating companies — Riverstone, Enterasys, GNTS and Aprisma — to focus on the service provider, enterprise e-business, professional services and infrastructure management markets, respectively. Cabletron would shut down.

Riverstone went public last February, and Aprisma will be a subsidiary of Enterasys, potentially spinning off by the end of the year.

The layoffs are specific to GNTS and won't affect the other companies, Sheppard says.

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