April 2 Network gear maker Juniper Networks Inc
, which is under pressure from investor Elliott
Management Corp to slim down, said it plans to reduce its global
workforce by 6 percent and focus on its high-growth businesses.
Juniper said most of the cuts would impact middle management
positions and that it expected to incur cash charges of about
$35 million in the first quarter, related to severance and other
The company had 9,483 full-time employees as of Dec. 31.
Juniper also said it would stop development of the
application delivery controller technology, which helps remove
excess load from servers, resulting in a non-cash intangible
asset impairment charge of about $85 million.
The company said it plans to consolidate its facilities,
disposing of about 300,000 square feet of leased facilities, and
record restructuring charges of about $70 million beginning in
the second quarter.
Juniper added that it expected to record other non-cash
asset write-downs of about $10 million in the first quarter and
that it expects to carry out more restructuring in the second
Hedge fund Elliott said in January the stock was
"undervalued" and could be worth $35-$40 if Juniper focused on
revamping its core business of making routers and switches for
mobile carriers such as Verizon Communications Inc and
The company said in February it expected to initiate a
substantial cost reduction plan resulting in annualized
operating expense savings of $160 million. (r.reuters.com/nyr28v)
Shares of Juniper closed at $26.35 on the New York Stock
Exchange on Wednesday.
(Reporting By Sampad Patnaik in Bangalore; Editing by Don