Juniper Networks Layoffs Hitting Hundreds of Workers Globally

Juniper Networks layoffs are impacting 440 of its workers as part of an overall restructuring plan.

The cuts were detailed in a U.S. Securities and Exchange Commission (SEC) filing. The layoffs should be completed by March 2024. Its workforce totals around 9,000.

“On Sept. 29, Juniper Networks … approved a restructuring plan intended to reallocate resources to efficiently support its strategic priorities as contemplated in the company’s outlook and guidance provided in the company’s earnings report on July 27,” it said. “The plan is the result of a thorough review of the company’s business objectives, and is intended to focus on realigning resources and investments in long-term growth opportunities. The company believes the plan will further allow it to continue to prudently manage operating expenses in order to deliver improved operating margin.”

For its second quarter of 2023, Juniper Networks reported $1.43 billion in net revenue, a 13% year-over-year increase. However, profit was $24.4 million, down from $113.4 million for the year-ago quarter.

We couldn’t reach Juniper Networks for more comment beyond the SEC filing.

Juniper Networks Layoffs to Start in Early December

In a Worker Adjustment and Retraining Notification (WARN) notice with the California Employment Development Department, Juniper Networks said the layoffs will start on Dec. 4. it plans to offer severance benefits and transition programs, including outplacement services and an employee assistance program, to affected employees.

“It is our hope that these programs will lessen the impact of the mass layoff on individual employees and on the community as a whole,” it said.

Among the impacted workers are software engineers and others.

Juniper Networks expects to incur $59 million in costs in connection with the plan, of which $48 million are expected to result in cash expenditures.

Layoffs to Occur Globally

The Juniper Networks layoffs will reduce headcount globally, and the company will incur cash charges for severance and other related employee termination expenses of approximately $40 million. In addition, the company expects to incur other restructuring and related costs of approximately $19 million.

“The actions taken under the plan are expected to be substantially completed by the end of the first quarter of fiscal 2024, though certain potential position eliminations are subject to local law and consultation requirements, which may extend the workforce reduction process beyond that date in certain countries,” the company said. “The actual timing and costs of the plan are based on a number of assumptions, and actual timing and amounts may differ materially from the company’s current expectations and estimates.”

In addition, Juniper Networks approved an expansion of its restructuring plan approved during the first half of 2023 and previously disclosed in its quarterly report for the quarter that ended June 30, 2023 of approximately $14 million in costs relating to asset impairments.