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Vonage shakeup: CEO resigns, cost-cutting announced 2007-04-16

In a series of events meant to stir things up at a company that many analysts have already written of as dead, Vonage CEO Michael Snyder has resigned on the same day that the pioneering VoIP provider announced a series of cost-cutting maneuvers, including operations consolidation, a reduction in marketing, and predictably, layoffs. Formerly president of ADT, Snyder led the company since February of last year, when he replaced founder and current Chairman of the Board Jeffrey Citron in that role -- the same man who will once again hold the CEO title while replacements are scouted. The shakeup seems to have buoyed investors confidence somewhat following the courtroom setbacks in that Verizon patent suit, with Vonage shares up as much as 13 cents in premarket trading; however, it's a rather hollow victory when you consider that the ~ $ 3.00 stock went for as much as $ 17.88 this time last year. So while it's good to see Vonage making some proactive moves in the face of what can only be considered a deathwatch, there's only so much the company can do to affect its own fate, and at this point we could only be a ruling or two away from the end.

By Evan Blass

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