Private 5G operator, Celona, recently made the strategic decision to downsize its workforce by around 20%, mainly affecting sales teams in the US and Europe. This move comes as a response to a slow-paced market impacted by macroeconomic uncertainties and disrupted global trade dynamics, which have decelerated deployment in the private 5G industry.
Rajeev Shah, CEO of Celona, highlighted a period of “hypergrowth” at the end of 2024, during which the company significantly expanded its sales force. However, shifting global trade policies have since tempered growth expectations. Shah remarked on the impact of uncertainty, noting that industries became hesitant, delaying investments and installations. Surprisingly, several markets did not grow as anticipated, particularly European nations like Germany.
Despite these challenges, Celona has implemented a refocused strategy targeting existing enterprise customers and exploring indirect sales channels in new sectors and geographies. The company is concentrating on stable growth targets of 30-40% year-over-year, contrasting the previous achievements of nearly 100% growth.
New industry interest is emerging, with robotics and warehouses showing a burgeoning demand. Still, the organization has had to scale back and prioritize development frameworks to align with the current economic status and regional idiosyncrasies. Such adjustments are crucial because private 5G technologies impact key industrial sectors, which themselves are undergoing various changes.
Shah assured that innovation plans are unaffected. Initiatives in AI and connectivity remain on schedule, with releases planned for next year. Among them, the AerFlex platform continues to make waves in smaller industrial sites, and the company announced a noteworthy product launch in the upcoming months.
Moreover, Celona is optimizing the use of AI tools for software development, aiming for improved organizational efficiency and team structures. Tactical partnerships are crucial for the company’s next steps, particularly with integrators like ALE and NTT Data in Europe, and Saudi Arabia’s STC, before venturing into expansive Middle Eastern markets.
Interestingly, facing a provisional withdrawal by T-Mobile for neutral-host networks in CBRS hasn’t swayed Celona’s strategic focus. Instead, Shah emphasized that seamless private- and public-network connectivity is now a more significant element of the company’s roadmap.
Shah conveyed a meaningful conclusion: while the market’s ebb and flow requires adjustments, Celona’s strong fundamentals and talented teams remain invaluable. If global conditions shift favorably, those affected by the layoffs could potentially find opportunities to reconnect with the company.
