Arris Starts Cutting Heads

Less than two months after closing its big Pace purchase, Arris is laying off 10% of its workers as it struggles with drooping sales and unfavorable exchange rates.

Alan Breznick, Cable/Video Practice Leader, Light Reading

February 22, 2016

2 Min Read
Arris Starts Cutting Heads

The winter just got longer and colder for Arris and many of its employees.

Arris Group Inc. (Nasdaq: ARRS) confirmed press reports that it has begun laying off about 10% of its global workforce, or roughly 800 employees, as it continues to struggle with drooping equipment sales to key telco customers, merger uncertainty in the cable space and unfavorable currency exchange rates. The layoffs follow the company's gloomy fourth-quarter earnings call last week, when the big communications equipment supplier reported revenues of just $1.1 billion, down nearly 13% from the final three months of 2014. (See Rough Arris Q4 Buoyed a Bit by Software.)

The layoffs were first reported earlier today by Multichannel News. The publication also reported that more staff layoffs may be on the way as Arris continues to battle "headwinds" in the cable, telco and satellite TV industries.

In a prepared statement, an Arris spokesperson said the layoffs have just begun but did not offer an exact timetable for carrying them out. "We are looking across the entire scope of the ARRIS enterprise to identify areas where we can find cost savings, eliminate redundancies, and increase shareholder value," the spokesperson said. "With this in mind, we have a headcount reduction goal of about 10 percent worldwide. We understand how hard these changes will be for the employees concerned and are committed to helping them through this difficult transition."

The fresh round of layoffs comes less than two months after Arris closed its $2.1 billion buyout of Pace Plc, another large communications equipment manufacturer. Arris carried out an earlier round of layoffs after it gobbled up yet another big equipment vendor, Motorola Home, less than two years ago, shedding about 500 workers.

Want to learn more about DOCSIS 3.1, PON and other new cable technologies? Then sign up now for Cable Next-Gen Technologies & Strategies, taking place at the Cable Center in Denver on Thursday, March 10.

The move also comes after Arris Chairman and CEO Bob Stanzione offered up a lackluster financial projection for the first quarter of 2016 on last week's earnings call, acknowledging that "the year is starting out more weakly than we thought it was." But he still expressed some optimism for the rest of the year, citing cable's early rollout of DOCSIS 3.1 gear, mounting customer interest in gigabit broadband services and growing demand for the company's flagship E6000 CCAP platform, as well as capacity upgrades of the R6000 through new software licensing deals.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

About the Author(s)

Alan Breznick

Cable/Video Practice Leader, Light Reading

Alan Breznick is a business editor and research analyst who has tracked the cable, broadband and video markets like an over-bred bloodhound for more than 20 years.

As a senior analyst at Light Reading's research arm, Heavy Reading, for six years, Alan authored numerous reports, columns, white papers and case studies, moderated dozens of webinars, and organized and hosted more than 15 -- count 'em --regional conferences on cable, broadband and IPTV technology topics. And all this while maintaining a summer job as an ostrich wrangler.

Before that, he was the founding editor of Light Reading Cable, transforming a monthly newsletter into a daily website. Prior to joining Light Reading, Alan was a broadband analyst for Kinetic Strategies and a contributing analyst for One Touch Intelligence.

He is based in the Toronto area, though is New York born and bred. Just ask, and he will take you on a power-walking tour of Manhattan, pointing out the tourist hotspots and the places that make up his personal timeline: The bench where he smoked his first pipe; the alley where he won his first fist fight. That kind of thing.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like