Collaboration software maker Groove Networks has cut its workforce by a fifth and has closed a $38m financing round from its investors.
Fifty-eight workers were laid off in a reorganisation of Groove's sales, marketing and services units to cut costs.
Groove Networks cited extended software sales cycles for large enterprises as a catalyst for the layoffs. Founded five years ago by Lotus Notes creator Ray Ozzie, Groove Networks develops desktop software for sharing information such as e-mail, documents and application data throughout an organisation.
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
The company also announced a funding round, its fifth. All existing investors participated in the round, including Microsoft, Intel and Accel Partners.
The new funds bring the total invested in Groove Networks since its creation to $155m .