Symantec Confirms Impending Layoffs
In confirming the layoffs, Symantec spokesperson Melissa Martin said the vendor has a strong focus on controlling its costs and has set cost savings targets for each business function. "In some instances, headcount reductions will be implemented as part of the ongoing cost savings initiative," Martin said.
Martin declined to specify how many employees will be laid off, but said less than 3 percent of Symantec's global workforce will be affected, and that the cuts won't impact all business units.
Originally reported by Silicon Valley gossip Website Valleywag, the layoffs are part of a job-cutting effort codenamed 'Project Xpress,' and are likely aimed at jettisoning underperforming sales staff.
Symantec last month reported strong second quarter earnings, but disappointed analysts with weak third quarter guidance. Last November, the third quarter was also a tough one for Symantec, as technical issues from a botched ERP deployment led to higher labor and administrative costs that were partially responsible for the falling short of its Q3 financial targets.
In January, Symantec announced a $200 million cost cutting campaign, and in March laid off 5 percent of its worldwide staff of 17,500.
In August, several of Symantec's closest partners told CRN that Symantec's channel program, long regarded as one of the best in the industry, had begun to take a turn for the worse.
At the time, some partners complained that Symantec's deal registration program wasn't giving them enough protection from predatory pricing, which caused their overall margins in registered deals to drop. Some partners also said Symantec had begun giving unacceptably preferential treatment to its large account resellers.