As a result of a global restructuring effort, Juniper Networks is reducing its workforce by 6 percent worldwide.
The majority of these reductions are immediate, and a significant proportion are middle-management positions, according to senior director of corporate communications Cindy Ta.
“Juniper plans to implement a streamlined organizational structure that strengthens our ability to execute, reinvigorates our mission-driven culture, and aligns to our growth opportunities in 2014 and beyond,” Ta said. “This action is among several initiatives designed to focus on high-growth segments and right-size certain functions, enabling us to work smarter, control costs and focus our resources on areas of innovation that matter most to our customers and partners.”
Juniper’s website lists that it currently has about 9,400 employees with 46 offices worldwide, serving more than 100 countries. The 6 percent cut would mean losing about 570 positions.
The networking equipment manufacturer is not disclosing a breakout of percentages by region, so it is unclear how many Sunnyvale employees will be affected.
The company estimates that it will acquire approximately $35 million for “severance and other related employee termination expenses” in the first quarter of fiscal 2014, according to a regulatory filing.
The filing also stated that more actions and restructuring charges are expected to be taken in the second quarter, including “facilities consolidations, marketing program reductions, and other asset restructures.”
The consolidation of facilities is anticipated to result in the disposal of about 300,000 square feet of leased facilities, representing approximately 12 percent of Juniper’s global facilities square footage.
Juniper reported it will gain facilities restructuring charges beginning in the second quarter of fiscal 2014 and continuing throughout the fiscal year of about $70 million.
“We anticipate potential additional restructuring charges of approximately $20 million to be accrued later in fiscal 2014,” the filing reported.
Ta added that the company will provide more details during its regularly scheduled quarterly financial results conference call on April 22.
Juniper laid off about 500 employees in October 2012–or about 5.3 percent of its workforce at the time–to reduce operating expenses.
