Menu
Juniper to lay off more than 500 and close facilities

Juniper to lay off more than 500 and close facilities

The company will also stop development on application delivery controller technology it licensed from Riverbed

Juniper Networks will lay off about 6 per cent of its workforce and back out of application delivery controllers as part of a restructuring intended to cut costs and focus the company on markets where it can grow fast.

The job cuts, from an employee base of more than 9400, will lead to $US35 million in severance and other costs in the current quarter, the company said in a regulatory filing on Tuesday.

The Sunnyvale, California, company will also consolidate its facilities, eliminating about 300,000 sqm of leased space, or about 12 per cent of its global square footage. That step will cost about $US70 million this year, it estimates.

Juniper announced a new plan for its business in late February under new CEO Shaygan Kheradpir, saying it intended to become more efficient and return more value to shareholders. Activist shareholders, including Elliott Management, had slammed the company's recent performance. In recent years Juniper has expanded beyond its roots in service-provider routing, going into enterprise switching, security and other businesses, but has failed in those ventures, Elliott said in January.

Juniper said in February it would consolidate its routing, switching, security and network management and control products into one portfolio, and continually review that portfolio to determine which products fit.

Tuesday's filing fleshed out some details of the new company plan, including one of the businesses Juniper will exit. The company said it will stop development of application delivery controller technology that it licensed in July 2012, a technology that notably has no revenue associated with it, according to Juniper's filing. It licensed that technology from Riverbed Technology for $US75 million to fill gaps in the Juniper product lineup. Ending development will lead to an asset impairment charge of US$85 million, the company said.

Juniper expects to take still more charges throughout the rest of this year for facilities consolidations, cuts in marketing programs and other asset restructuring.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesNetworkinglayoffsSEC Filingsrestructuringjuniper networks

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments