Aviat Networks to Cut Staff in Restructuring Effort
Published on: 29th Jan 2014
Note -- this news article is more than a year old.
Microwave networking vendor, Aviat Networks is looking to shave US$5 6 million off its operating costs this year as the firm reaches to an unfavourable operating environment.
Job losses are implicit, although the company did not say how many staff will be made redundant by the plans.
Following a review, Aviat Networks said that it is implementing an organizational restructuring plan. These actions are expected to result in cost and expense savings of approximately $5 million to $6 million in fiscal year 2014 with an incremental cost savings of $13 million to $14 million in fiscal year 2015.
"We are implementing a restructuring plan to rapidly realign our cost structure with near term business conditions while continuing to position the company for future opportunities," says Michael Pangia, president and CEO, Aviat Networks. "The decision to downsize our workforce was not made lightly, but is a necessary step to achieve Aviat Networks' long-term goals."
Aviat Networks expects to incur approximately $6 million to $7 million of cash payments related with these cost reduction initiatives for severance and employee-related cash charges. Cash payments in fiscal 2014 are expected to be approximately $5 million with the remaining $1 million to $2 million of cash payments occurring in the first half of fiscal 2015.
The directors are also to have their pay reviewed.
The company said that it will provide additional information on this restricting plan during its earnings call scheduled for February 6, 2014.
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