Extreme Networks is attempting to make a silk purse out of a sow's ear, by announcing its ‘new solutions-based go-to-market strategy’ on the back of a less than impressive quarter.
The strategy – aka restructuring – will see the vendor realign its priorities with a much more software and solutions focused approach; however, will also see roughly 18% of the global workforce axed.
In a press release issued today, Extreme managed to largely circumnavigate the issue of job losses, instead painting an optimistic picture using words like: enhanced customer satisfaction, improved competitiveness and increased shareholder value.
"I'm pleased with how quickly our leadership team transformed our market vision into a tangible, executable plan," said Ed Meyercord, president and CEO of Extreme Networks. "The changes we are making today put us in a position to leverage our deep portfolio of technology, talented resources and unique position in the market. Our focus will be to build on our strong customer relationships with a solutions-based approach and the highest level of customer support in the industry."
The press release neglected to mention the number of job cuts; however, in its 8-K filing made to the United States Securities And Exchange Commission, the firm said: “The restructure plan provides for a reduction of approximately 285 positions or 18% of its global workforce, inclusive of contractors. The plan effects [sic] the majority of Company departments, and both domestic and international locations.”
Extreme said in the filing, that it expected to incur charges in the region of $13-15m in the current quarter of fiscal 2015, but estimated it to yield approximately $40m in reductions to operating costs in fiscal 2016.