LTE-proven microwave networking solutions vendor Aviat Networks has decided to trim work force to reduce cost.
The company will share more details later.
Aviat Networks said its organizational restructuring plan is expected to lower quarterly operating expenses to approximately $27 million by the fourth quarter of fiscal 2014, below the $28 million level communicated by the company on January 14, 2014.
These actions are expected to result in cost and expense savings of approximately $5 million to $6 million in fiscal year 2014 with an incremental cost savings of $13 million to $14 million in fiscal year 2015.
Michael Pangia, president and CEO, Aviat Networks, said: “The restructuring program includes: realignment of the product development organization, streamlining of the overall organization through the consolidation of internal functions and back office and sales support productivity, lowering operations and services overhead and increasing use of outsourcing to reduce fixed costs and enhance flexibility.”
Aviat Networks expects to incur approximately $6 million to $7 million of cash payments related with these cost reduction initiatives for severance and employee-related cash charges.
The telecom equipment vendor is reviewing strategic initiatives to further improve the company’s ability to scale and address new markets with a focus on better positioning Aviat Networks for top line growth, consistent positive cash flow generation and better shareholder returns.
