Juniper Networks to Cut 6% of its Workforce
Published on: 3rd Apr 2014
Note -- this news article is more than a year old.
Juniper Networks has announced that it is cutting 6 percent of its workforce in a cost reduction measure, leading to around 570 job losses.
The company said that majority of these redundancies are immediate, and a significant proportion are middle management positions.
The company estimates that it will incur cash charges of approximately $35 million for severance and other related employee termination expenses in the first quarter of fiscal 2014.
The company added that it also plans to consolidate its facilities, which will result in the future disposal of approximately 300,000 square feet of leased facilities, representing approximately 12% of its global facilities square footage.
Juniper Networks is making the cuts as part of a restructuring plan that it outlined earlier this year which it said would see it focus on high-growth segments.
In addition, in connection with the review of its product portfolio, the company has determined to cease development of the application delivery controller technology licensed in July 2012 that will result in a non-cash intangible asset impairment charge of approximately $85 million in the first quarter of fiscal 2014. There are no revenues associated with this technology. In addition, the Company expects to accrue other non- cash asset write-downs of approximately $10 million in the first quarter of fiscal 2014.
Additional actions and restructuring charges are expected to be taken in the second quarter and the balance of fiscal 2014, including facilities consolidations, marketing program reductions, and other asset restructures.
Juniper Networks has been speculated as a possible takeover target by NSN following the disposal of Nokia's handset division to Microsoft.
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