Juniper Confirms Layoffs, Stays Mum On Size, Scope1:46 PM EST Mon. Oct. 03, 2011
Juniper Networks is cutting headcount as part of an internal restructuring, but has declined to confirm the number of employees being let go and what Juniper groups the layoffs affect.
A Juniper spokesperson confirmed the layoffs to CRN but declined to elaborate on either the number of employees or the Juniper groups affected by the cut.
"Juniper consistently works to best align our people and resources against the growth opportunities on which we are focused," said David Shane, vice president, global corporate communications, in a statement e-mailed to CRN. "While we are eliminating a small number of positions, the company plans to end the year with a net increase in our global workforce."
There have been several weeks of rumors around Juniper planning to lay off employees following a disappointing Q2 earnings report. In late August, UBS analyst Nikos Theodosopoulous cut his price target on Juniper's stock and suggested Juniper's layoffs could be sizable.
"Following further industry checks, we believe Juniper may be planning a deeper workforce reduction than we previously anticipated, perhaps ~10% of its total headcount of around 9,300 as of the end of the June quarter," Theodosopoulos wrote in the note, dated Aug. 30.
According to Forbes, Juniper described Theodosopoulos' 10 percent number as "grossly overstated and inaccurate."
However, the blog SIlicon Angle on October 1 reported that 300 employees had ben cut, quoting "a source inside Juniper."
A number of IT vendors have downsized this year following lackluster earnings reports and an uncertain economic climate. Among the most notable is Juniper archrival Cisco, which has cut nearly 13,000 positions -- a combination of layoffs, early retirements and asset sales -- as part of a plan to remove $1 billion in expenses in its fiscal 2012.