Juniper Networks has announced that it is planning to cut about 6 percent of its workforce as a part of a restructuring plan intended to streamline business structure.
In a regulatory filing on Tuesday, the company said that as a result of the restructuring plan, the Network gear maker will incur US$35 million in severance and other employee termination related costs in the current quarter.
“The actions announced today are among several initiatives under our (integrated operating plan) that are designed to focus the Company on high-growth segments and to right-size certain functions,” Juniper said in the filing.
“Overall, the Company believes that it is taking a balanced approach to cost management and prioritizing and strengthening our focus on the innovation that matters most to our customers.”
As of December 31, 2013, Juniper Networks had 9,483 full-time employees, implying job cuts of about 569. Juniper also noted that majority of the reductions is immediate and would impact mainly the middle management positions.
The California based company said it will cease development of the application delivery controller technology after a non-cash intangible asset impairment charge of around $85 million. The company stated that there are no revenues associated with this technology.
Juniper also said it expects to record other non-cash asset write-downs of about $10 million in the first quarter and might go for further restructuring in the second quarter.
The company revealed plans to consolidate its facilities, disposing of about 300,000 square feet of leased facilities, and estimates to incur restructuring charges of about $70 million beginning in the second quarter.
Further, the company anticipates potential additional restructuring charges of about $20 million to be accrued later in fiscal 2014. Juniper said it will discuss its restructuring plan in more detail when it reports quarterly earnings on April 22.
