Vonage Holdings Corp. has accepted the resignation of its Chief Executive Officer, and adopted a number of cost-cutting measures, amid an ongoing legal battle with telecom incumbent, Verizon Communications.

Vonage CEO, Michael Snyder, resigned yesterday, after a mutual agreement with the company. Chairman and founder, Jeffrey Citron, has agreed to take on the role of Chief Executive until a replacement can be found.

“We think this is in the best interest of the company at this time and for both parties,” Citron said in a conference call with analysts.

Vonage is also planning to cut its annual marketing budget by $110 million, or more than 25%, in hopes of increasing financial efficiency. The company currently spends almost half of its annual revenue, or $275 per new subscriber, on marketing efforts, which include quirky television and internet ads.

“As we assess the current environment, we believe the steps we are taking to reduce cost are the appropriate ones. We look forward to working through this transition and bringing the business toward profitability,” Citron commented.

Yankee Group analyst, Zeus Kerravala, noted that Vonage was in the midst of a change in thinking, and would need to increase efficiency when acquiring subscribers in the weeks and months to come.