Sunset at Sunrocket? Layoffs rumored

Update: Andy Abramson has more details on the story. CTO/CXO and several others are gone.  Still no word from the company or their PR department.

Sunrocket, one of the many VoIP service providers that has been suffering as a result of an all-out voice assault by the cable companies is rumored to have hit a major airpocket today. Our sources say that the company laid off about 40 of its employees, including some C-Level executives. While the company isn’t exactly out of business, things are pretty dicey here.

I have emailed their PR department but haven’t heard anything just yet. I am getting on a plane in about 10 minutes and if they get in touch before that, I will update the post. I am going to try again during the stopover in Newark. Please treat this as a rumor for now.

The VoIP service provider claims that it has 200,000 subscribers. The founders – Joyce Dorris and Paul Erickson – left the company earlier this year, and now the only hope for the company is to raise more capital from its existing investors including Nokia. The VoIP service providers including Vonage have been having a bad year as cable companies have started to flex their muscles and offering triple play services. SunRocket has been a hard company to figure out – and despite it’s great marketing spin, we found it hard to buy into their plans.

Our previous SunRocket stories