Aviat Networks, a supplier of microwave networking solutions to telecom network operators, will slash 87 jobs to save nearly $7 million per annum.
The decision to cut job — majority of workforce reductions will be in the fourth quarter of fiscal 2016 – is due to poor demand from telecom operators.
“We’re continuing to see strong demand for our products and services within the Private Network vertical,” said Michael Pangia, president and CEO, Aviat Networks. “Spending by mobile operators continues to be more challenging than anticipated.”
Juniper Networks has already announced that its revenue will dip in the first quarter of 2016 against its own previous guidance due to weak market conditions.
Telecom analysts are speculating that rivals of Juniper Networks such as Cisco Systems and others may also reveal their business conditions in the next 1-2 weeks.
Aviat Networks will be aiming for office consolidation, the integration of various shared service business units and other cost control measures, to improve gross profit margins while lowering general and administrative expenses further.
The US-based technology company anticipates overall savings of approximately $16 million during fiscal 2017 compared to fiscal 2016. Aviat Networks will incur restructuring expenses associated with these events of approximately $4 million.
Meanwhile, Juniper Networks is expecting to clock lower revenue of $1,090 million to $1,100 million in the first quarter of 2016 against the company’s guidance of $1,150 million to $1,190 million, due primarily to weaker than anticipated demand from enterprise and timing of deployments of certain U.S. and EMEA Tier 1 telecoms.
Aviat Networks, headquartered in Santa Clara, California, has sold more than one million systems in over 140 countries. Aviat Networks provides LTE-proven microwave networking solutions to mobile operators.
Vina Krishnan
editor@telecomlead.com
