In a filing with the SEC yesterday, Juniper Networks offered some sobering new information about its plan to refocus and cut costs. They’ll be reducing their headcount worldwide by 6%, which given current levels of around 9500 means that about 500-600 folks will be looking for alternatives. Juniper says a significant proportion of those will be from middle management.
Beyond the layoffs and the $35M in severance they’ll post in Q1, Juniper is also moving to review and streamline its product portfolio and consolidate its facilities. During their recent earnings call closing out 2013, they said they’d be looking for savings of $160M in annual opex.
One early casualty is the development of the application delivery controller technology they licensed from Riverbed a couple years ago for $75M. That won’t affect revenue (there wasn’t any yet) but it will mean an $85M non-cash impairment charge to earnings.
On the facilities front, Juniper is planning to reduce its global square footage by 300,000 square feet, or 12%. The restructuring charges there will be $70M so far, with more to come.
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