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Avaya to cut 1,900 jobs

Network hardware maker Avaya has announced 1,900 redundancies as part of a cost-cutting restructuring plan.

Avaya predicted reduced revenues for the quarter ending 31 March of between $1.24bn (£827m) and $1.28bn(£905m), down from the $1.25bn-$1.36bn it had previously stated. The company also expects to post a net loss from ongoing operations of between $0.06 and $0.10 per share for the quarter. Overall, Avaya expects a net loss of between $0.68 and $0.72 per share for the quarter.

The job cuts come as part of an effort to trim between $180m (£127m) and $200m (£141m) in expenses, the company said in a statement. The company will take a $100m (£70m) restructuring charge and a $130m (£91m) charge tied to the conversion of $438m (£309m) of Avaya preferred stock held by Warburg Pincus Equity Partners LLC into 38.3 million shares of Avaya common stock.

Warburg Pincus will also purchase more than 14 million additional shares of Avaya common stock.

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