Juniper to lay off more than 500 and close facilities

The company will also stop development on application delivery controller technology it licensed from Riverbed

Juniper Networks will lay off about 6 per cent of its workforce and back out of application delivery controllers as part of a restructuring intended to cut costs and focus the company on markets where it can grow fast.

The job cuts, from an employee base of more than 9400, will lead to $US35 million in severance and other costs in the current quarter, the company said in a regulatory filing on Tuesday.

The Sunnyvale, California, company will also consolidate its facilities, eliminating about 300,000 sqm of leased space, or about 12 per cent of its global square footage. That step will cost about $US70 million this year, it estimates.

Juniper announced a new plan for its business in late February under new CEO Shaygan Kheradpir, saying it intended to become more efficient and return more value to shareholders. Activist shareholders, including Elliott Management, had slammed the company's recent performance. In recent years Juniper has expanded beyond its roots in service-provider routing, going into enterprise switching, security and other businesses, but has failed in those ventures, Elliott said in January.

Juniper said in February it would consolidate its routing, switching, security and network management and control products into one portfolio, and continually review that portfolio to determine which products fit.

Tuesday's filing fleshed out some details of the new company plan, including one of the businesses Juniper will exit. The company said it will stop development of application delivery controller technology that it licensed in July 2012, a technology that notably has no revenue associated with it, according to Juniper's filing. It licensed that technology from Riverbed Technology for $US75 million to fill gaps in the Juniper product lineup. Ending development will lead to an asset impairment charge of US$85 million, the company said.

Juniper expects to take still more charges throughout the rest of this year for facilities consolidations, cuts in marketing programs and other asset restructuring.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

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 business issuesNetworkingjuniper networksrestructuringlayoffsSEC Filings

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?