Menu
Akamai cuts five per cent of global workforce

Akamai cuts five per cent of global workforce

The company's cloud security solutions revenue surged over 32 per cent to US$135.2 million in the fourth quarter

Akamai Technologies’ profit and revenue topped estimates on 6 February, as an aggressive push into cloud security helped to offset a decline in its traditional business of speeding up content delivery through the web.

The content delivery network and cloud services provider’s shares were up nearly 10 per cent at US$69 in after-hours trading.

However, the company has cut about five per cent of its global workforce, CEO Tom Leighton said during a call with analysts.

Akamai, in which activist hedge fund Elliott Management Corp revealed a 6.5 per cent stake, said it had recorded a US$52 million charge related to the job cuts, along with facility closures, largely in the media division.

Revenue from the company's cloud security solutions surged over 32 per cent to US$135.2 million in the fourth quarter ended 31 December, while it declined three per cent to US$284 million in its media division.

The company's total revenue rose 7.7 per cent to US$663.5 million, beating analysts' average estimate of US$649.1 million.

However, the company's net income plunged to US$19.1 million, or 11 cents per share, from US$91.6 million, or 52 cents per share, a year earlier, due to certain charges.

The company also said it recorded a US$26 million provisional charge associated with the recent US tax changes.

Excluding items, the company earned 69 cents per share, above analysts' average estimates of 63 cents.

Elliott in December pushed the company to look for strategic options.

(Reporting by Sonam Rai and Arjun Panchadar in Bengaluru; Editing by Sriraj Kalluvila)


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 cloud servicesakamai

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments