Juniper Networks to Cut Costs and Return Money to Shareholders
Published on: 20th Feb 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
USA based Juniper Networks has announced a restructuring and cost cutting measures designed to reduce its annual operating costs by USD160 million.
The company, which has been speculated as a possible takeover target by NSN, also said that it will return at least USD3 billion to shareholders over the next three years, mostly through share buybacks.
The details of the changes were announced by Shaygan Kheradpir, who took over as CEO just last month.
"I joined this phenomenal company as an agent of change to enable Juniper to realize its potential through a more focused, agile, connected, and execution-oriented structure optimized to capture the significant and growing opportunity we see before us," Kheradpir said in a company statement.
What the company didn't do in its statement was confirm if the cost cutting measures would include any job losses or the sell off of any divisions.
The company will also name two new independent directors to the board, mainly to satisfy the activist investor, Elliott Management which has been pushing for changes at the company.
The move is expected to avoid a proxy fight between the board and its shareholders.