Novatel Plans to Cut 20 Percent of Workforce

Novatel Wireless plans to cut up to 20 percent of its workforce as it restructures its mobile computing and machine-to-machine business units. The San Diego wireless solutions company expects to lay off approximately 75 to 80 people over the next 45 days. Last year, the company initiated a series of layoffs that resulted in 6 percent of its workforce losing their jobs.

Novatel Wireless LogoNovatel, which employed 403 workers in the second quarter, has been chipping away at its workforce. At the end of 2012, Novatel employed 459 workers, according to filings with the Securities and Exchange Commission. Last year’s cuts were primarily in its M2M business, which was reduced by 25.7 percent, to 81 employees. The mobile computing business’s headcount remained essentially even.

“We are seeing an increasing overlap in our mobile computing and M2M segments, which allows us to leverage development resources across our business units while still developing the strongest product portfolio for both segments,” CEO Peter Leparulo said in a statement.

Novatel sells “MiFi” Intelligent Mobile Hotspots, tracking solutions, USB modems and other wireless services to carriers, distributors and retailers. It maintains offices in San Diego, Dallas, Calgary, Canada and overseas. The restructuring will result in consolidating the company’s development sites and certain manufacturing operations.

Some employees posting to community jobs site Glassdoor noted they would not recommend working at the company. One Software Engineer II said advantages such as working with brilliant colleagues, the latest technology and a good work environment didn’t outweigh factors such as low salaries, worries about the company’s stability and… layoffs.

 

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