Extreme to cull 110 workers in strategic restructure

Extreme Networks has announced plans to cut $20m (£12m) in costs out of its business by the end of its next financial year, and will be reducing its headcount by approximately 16 per cent, with 110 positions understood to be at risk.

Extreme Networks has announced plans to cut $20m (£12m) in costs out of its business by the end of its next financial year, and will be reducing its headcount by approximately 16 per cent, with 110 positions understood to be at risk.

In a statement today Extreme said it would consolidate most of its software engineering resources into current facilities in lower cost venues, enabling it to boost its R&D investment. The axe will "in all functional areas outside of R&D".

CEO Oscar Rodriguez said that rebalancing employee levels would drive down fixed costs and help lower variable operating costs.

This is this is the second time in six months that Extreme's management has cut its workforce; in February a sluggish second quarter performance saw 35 employees given their marching orders.

"We expect these changes will allow us to drive a competitive stance by increasing R&D resources to advance product leadership and by driving more investment in field marketing and brand awareness, while allowing the company to attain consistent double-digit operating income," said Rodriguez.

Extreme said it will take a pre-tax restructuring charge of $3.5m in its fiscal Q4, which closed on 3 July. Full results are due at the beginning of August.

The firm expects sales for the final quarter of its fiscal 2011 to be somewhere in the range of $88-$90m, above previous guidance. On a GAAP basis, it expects to make a loss of between two and four cents a share.

MicroScope+

Content

Find more MicroScope+ content and other member only offers, here.

Read more on Network Infrastructure Solutions and Services

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

ComputerWeekly.com

  • CIO Trends #6: Nordics

    In this e-guide, read how the High North and Baltic Sea collaboration is about to undergo a serious and redefining makeover to ...

  • CIO Trends #6: Middle East

    In this e-guide we look at the role of information technology as the Arabian Gulf commits billions of dollars to building more ...

  • CIO Trends #6: Benelux

    In this e-guide, read about the Netherlands' coalition government's four year plan which includes the term 'cyber' no fewer than ...

SearchITChannel

Close