Boston, MA 04/09/2014 (wallstreetpr) – Juniper Networks, Inc. (NYSE:JNPR) announced last week plans to reduce its workforce by 6 percent. The company also announced that it will shed 12 percent of its real estate leased facilities. All these are efforts the networking materials company is making to shore up its operations.
If the 6 percent reduction in workforce is achieved, the company will be able to remove about 570 workers from its current payroll. Based on the latest filing, the company has roughly 9,500 workers in total. And in Sunnyvale where it is based, the company employs about 2,500 people. It is not currently known how many people will be removed from its local operation.
Reducing expenses
Juniper Networks, Inc. (NYSE:JNPR) is facing intense competition in the networking infrastructure business. This has meant decline in revenue and soaring expenses, which in effect impact profits. In order to remain afloat even as it tries to gain market share, the company announced integrated business plan. The plan involves streamlining the business so as to enhance efficiency and achieve growth. And towards that operations streamlining, the company deemed it fit to adjust its workforce, especially in the mid-management positions.
The company expects its latest layoff move to result in significant cost savings in the future. However, in the latest workforce cut, the company will have to take a cash charge amounting to $35 million in the first quarter due to termination expenses.
Leased facilities
In addition to the workforce restructuring, Juniper Networks, Inc. (NYSE:JNPR) also announced that it will drop about 12 percent of its current leased facilities. That means that the company will dispose about 300,000 sq feet of its current leased real estate.
Juniper Networks, Inc. (NYSE:JNPR) is expected to take several more restructuring initiatives as long as competition and high expenses remain a threat to the business. As the company restructures its operation system, it is turning greater focus on high-growth business segments.
Shares of the company fell 0.32 percent to $25.25 in the last session.
