Akamai cuts 7 percent of workforce
SAN FRANCISCO, Nov 19 (Reuters) - Akamai Technologies Inc (AKAM.O) will slash 7 percent of its global workforce, or 110 jobs, joining a growing list of technology companies that are trying to cut costs in the face of slowing demand.
The company, which provides services that help speed delivery of Web content, said on Wednesday it plans to use the savings to invest in growth opportunities as well as international expansion.
"We have not changed our business outlook," Chief Financial Officer J.D. Sherman said in statement. "However, we want to ensure that we can keep investing for growth even in the current economic climate."
Akamai did not immediately return a call seeking further details.
The tech sector's job picture is only starting to feel the effects of the global economic slowdown, which is crimping consumer demand. Other technology companies that have announced job cuts in recent days include Sun Microsystems Inc (JAVA.O) and Applied Materials Inc (AMAT.O).
Akamai expects to take a restructuring charge of around $4 million in its current quarter for severance and related expenses, which will be partially offset by a reduction in noncash stock-based compensation of $800,000.
The company said it also expects to recognize a loss of $2.5 million related to certain leased facilities.
Akamai's shares are down around 70 percent this year. The company is frequently the subject of takeover rumors.
Cambridge, Massachusetts-based Akamai's shares closed down $1.27. or nearly 11 percent, at $10.63 on Wednesday. (Reporting by Gabriel Madway; Editing by Tim Dobbyn)
