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.
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