Juniper Networks to lay off 440 employees at a cost of $59MJuniper Networks to lay off 440 employees at a cost of $59M
Juniper anticipates the majority of the layoffs will occur by the end of Q1 2024. The reduced headcount is part of a restructuring plan Juniper announced earlier this year.
October 6, 2023
Optical routing and networking giant Juniper Networks plans to lay off about 440 employees globally at a cost of nearly $59 million. Of the $59 million, about $48 million will likely include cash charges for severance and other employee termination expenses, according to an SEC filing.
The networking company anticipates the majority of the layoffs will occur by the end of Q1 2024, depending on local law and consultation requirements. The layoffs are part of a restructuring plan Juniper announced earlier this year.
Juniper's end-of-year employee counts:
(Chart data source: Annual filings with the SEC)
Juniper said the restructuring plan is due to a "thorough review of the Company's business objectives, and is intended to focus on realigning resources and investments in long-term growth opportunities. The Company believes the Plan will further allow it to continue to prudently manage operating expenses in order to deliver improved operating margin."
Juniper's stock rose "fractionally in extended-hours trading" yesterday, according to Seeking Alpha. The company's share price rose about 1% in Friday morning trading.
Juniper's Enterprise business takes off
Of late, Juniper Networks has faced revenue challenges as customers work through orders placed when the supply chain was backed up, but executives hope increased AI investment will buoy its bobbing cloud business.
The networking company brought in $1.43 billion in revenue for Q2, up 13% year-over-year (YoY) and up 4% sequentially. Its cloud business dropped 6% YoY in Q2 and the service provider business grew 1% YoY.
However, the sun was shining on Juniper's enterprise business in Q2, delivering "record revenue results," according to CEO Rami Rahim. The Enterprise segment revenue reached $646 million, up 38% YoY and an increase of 16% over Q1.
"The growing investments that the restructuring plan referred to likely include enterprise networking gear," speculated Network World's Michael Cooney.
In addition, the Enterprise business is an area where Juniper is gaining on competitor Cisco, explained Mike Genovese, managing director and senior research analyst for Rosenblatt, in a newsletter.
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