Parallel Wireless cuts jobs, cites slow Open RAN adoption, supply chain
Analysts remain optimistic that the jobs cuts don’t suggest larger problems brewing beneath the surface
Open RAN vendor Parallel Wireless reported widespread layoffs earlier this week, citing economic conditions and the slower-than-expected pace of Open RAN adoption. While the company has not disclosed a number, one estimate from Indian technology consultant RIU Global Services suggests that 500 individuals across India, Israel, the U.K. and the U.S. have been affected by the cuts. If accurate, the number represents just over 50% of its staff, according to the previous estimated workforce numbers, as reported by Craft.co.
In a LinkedIn post, former executive VP of marketing Eugina Jordan, shared that she was one of those cut. “My heart goes out to all my colleagues across the globe that have been impacted by a mass layoff at Parallel Wireless, including yes, myself. I was one of the affected as well,” she wrote. “Our amazing team has changed the industry for the better and has helped many global customers reimagine their networks. I personally could not be prouder to have been a part of that industry disruption and innovation.”
The development was somewhat of a shock for the industry as business for Parallel Wireless — which was founded in 2012 — has, by all accounts, appeared to be booming. The company has been an early supporter of Open RAN standards and has worked with several carriers and other industry players, like Inatel, Türk Telekom and Juniper Networks.
However, Parallel Wireless CEO Steve Papa told Fierce Wireless in a statement that despite industry-wide excited around Open RAN, adoption has remained slow. “We are making adjustments to right size given the realities of global economic conditions, Covid supply chain constrained world, and the pace of adoption of open RAN,” he said.
Analysts, though, remain optimistic that the jobs cuts don’t suggest larger problems brewing beneath the surface, given the industry’s push towards opening up the RAN and the reality that economic troubles are being felt everywhere, by everyone. Specifically, AvidThink founder and principal Roy Chua told Mobile World Live that he believes the layoffs were the result of “recessionary pressures” and are “independent of open RAN.”