& cplSiteName &

Juniper Cuts Headcount by 6%, Axes ADC

Ray Le Maistre
4/3/2014
50%
50%

Juniper Networks is making 6% of its employees, about 570 staff, redundant as part of its ongoing operational review, with many of the job cuts affecting middle management positions.

The "majority of these reductions are immediate," the company stated in a filing with the Securities and Exchange Commission (SEC) , also noting that the job cuts will result in fiscal first-quarter charges of around $35 million.

Juniper Networks Inc. (NYSE: JNPR) is also discontinuing the development of its application delivery controller (ADC) technology, which was built using technology licensed from ADC specialist Riverbed Technology Inc. (Nasdaq: RVBD) and which generates no revenues for Juniper. (See Juniper Taps Riverbed for Enterprise Help.)

Shutting down that development, and ceasing the licensing agreement, will cost Juniper $85 million.

The job and portfolio cuts are part of Juniper's efforts to revamp its operations and cut annual costs by $160 million per year following pressure from activist investor Elliott Management. Only days into his new job, Juniper CEO Shaygan Kheradpir found himself under intense and very public pressure from Elliott in early January, and subsequently announced the company's integrated operation plan (IOP) in mid-February. (See Juniper Bows to Investor Pressure, Refocuses, Juniper CEO Preps New Roadmap, and Investor to Juniper: 'You Suck'.)

Further action is to come. Juniper also noted in its SEC filing that "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." The company said it plans to "consolidate its facilities" by cutting its leased building space by 300,000 square feet, about 12% of the company's global total. These reductions will incur charges of about $70 million, Juniper estimates.

Juniper says it will discuss these actions on its next earnings conference call on April 22.

For more on Juniper:

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DOShea
50%
50%
DOShea,
User Rank: Blogger
4/3/2014 | 9:29:29 PM
In other news...
This sounds like another bit of bad news for Riverbed in the highly competitive ADC market.
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
4/3/2014 | 2:32:02 PM
Inevitable but worrying times
This was on the cards given the announcements in February but the air of uncertainty is going to still be hanging over Juniper staff after this, with furthewr cuts to come and site closures. Best that the management gets it done as soon as possible if they feel they have to do it at all.
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
June 26, 2018, Nice, France
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 17, 2018, Chicago, Illinois
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
NFV Is Down but Not Out
Iain Morris, News Editor, 5/22/2018
Trump Denies ZTE Deal, Faces Senate Backlash
Dan Jones, Mobile Editor, 5/22/2018
What VeloCloud Cost VMware
Phil Harvey, US News Editor, 5/21/2018
5G in the USA: A Post-BCE Update
Dan Jones, Mobile Editor, 5/23/2018
Vanquished in Video, Verizon Admits OTT Defeat
Mari Silbey, Senior Editor, Cable/Video, 5/23/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed