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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesNetworkingjuniper networksrestructuringlayoffsSEC Filings

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments