Vonage shakeup: CEO resigns, cost-cutting announced

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 investor 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 be just a ruling or two away from the end.

[Photo courtesy of CNET]

[Preston @ Apr 12th 2007 11:33AM]

That's a shame.

[Turtle @ Apr 12th 2007 11:55AM]

Oh, well, it was fun while it lasted. I'll go back to my Skype Mobile now.

[Bryan Canning @ Apr 12th 2007 11:56AM]

I agree. I've had their service for over a year now and it has been stellar.

[strider_mt2k @ Apr 12th 2007 11:56AM]

Portable Skype rocks the flash drive.

[Ozbone @ Apr 12th 2007 12:18PM]

"proactive" ??*#@! ... more like "reactive". I've liked Vonage .... but long-term I really have to wonder if even these moves can save it.

[Jnetty @ Apr 12th 2007 1:12PM]

I'm just signed up in January... now what for me?
I switched from ATT Vantage b/c they sucked.

[Ordeith @ Apr 12th 2007 1:49PM]

" a reduction in marketing"

Does that mean we will stop getting crap Vonage SPAM? Their continued insistance on sending unsolicited bulk email using some of the worst bulk mailers has caused me to want to celebrate the demise of Vonage.

And there are plenty of low cost alternatives.

Try Packet8 or Lingo

[Jared @ Apr 12th 2007 3:29PM]

If Vonage goes down, then how long is it before Verizon goes after all the other VoIP's? I'm not sure if jumping ship to another VoIP provider like Packet8, Sunrocket, etc is going to help.

[DudeAsInCool @ Apr 12th 2007 2:27PM]

I like Vonage and I HATE the idea of having to switchover to one of the crappy conglomerates. I don't understand why the service isn't taking off with consumers--it's cheaper and better than all the other phone services I had.

[engadget.com @ Apr 15th 2007 11:46PM]

Try another VOIP provider. Most of them are better than Vonage. Start by looking at the list at http://www.voip-info.org/wiki/. Look for a provider that supports SIP and you can use the same, or similar hardware, as you used with Vonage.

[adminleadingedge @ Apr 12th 2007 5:40PM]

Not to toot a horn, but there is another great VoIP provider, cyberscope. Chech them out, cyberscope.com

[Justin @ Apr 13th 2007 11:02AM]

Everyone should have Vonage who has a cable modem. The service is excellent, the options are fantastic and free (voice mail to email, call forwarding to multiple phones)!

And for $15/month.

The $24 service is more than probably 75% of the people need.

Please don't die Vonage, please!

[conigs @ Apr 17th 2007 9:10AM]

@herston:

Wow... spam much?

[Rob @ Apr 19th 2007 8:44AM]

Verizon's patents are apparently invalid. Verizon could now possibly be sued for copyright infringement as the patented information was published originally by someone else on the VOIP forum: http://www.itworld.com/Net/3303/070418verizonpatent/