Avaya will include layoffs in an effort to cut between $135 million and $235 million from its operating costs in its next fiscal year, which begins Oct. 1.
That's on top of the roughly $105 million Avaya said it removed during its current fiscal year and will come "as a result of currently anticipated actions, including a reduction in indirect spending, supply chain-related actions, real estate consolidations and ongoing employee head count management," wrote Avaya in a late September Form 8-K filing with the U.S. Securities and Exchange Commission.
Overall, said Avaya, it intends to remove $400 million in annualized cost savings by the end of its fiscal 2015.
[Related: Channel Integration Details Emerge As Avaya Closes Radvision Acquisition]
Avaya didn't provide any additional details about where that "head count management" might occur. The Basking Ridge, N.J., company has about 17,000 employees worldwide.
Avaya filed a Form S-1 with the SEC in June 2011 with the intention of an initial public offering which, despite occasional rumors, no longer appears to have a target date. Avaya has seen substantial executive turnover as well -- including the departures of a number of C- and SVP-level employees, as well as hires in those same categories -- over the past year. The most recent was the hiring of CFO Dave Vellequette, who replaced Anthony Massetti in August.
Avaya recently completed a $230 million acquisition of Radvision, boosting its videoconferencing and video infrastructure assets. For the quarter ended June 30, 2012, Avaya reported $1.25 billion in revenue, compared to about $1.37 billion in the prior-year quarter, and a $166 million loss, compared to a $152 million loss the previous year.
PUBLISHED SEPT. 27, 2012
