Enterasys Networks Inc. is laying off 115 employees in a move designed to lower overall expenses and increase profi...
January 17, 2005
Enterasys Networks Inc. is laying off 115 employees in a move designed to lower overall expenses and increase profit.
The workforce reduction, which will be completed this quarter, will decrease annual salaries and related expenses by approximately US$9.5 million in addition to previously announced savings.
“(The) announcement is consistent with our ongoing strategy to reduce our cost structure and accelerate our path to profitability,” said William O’Brien, chief executive officer of Enterasys Networks. “We remain focused on driving top-line growth through continued investment in our Secure Networks products and solutions."
As a result of this reduction and additional cost-saving measures taken in the fourth quarter, Enterasys expects to record severance charges in the fourth quarter of 2004 and in the first quarter of 2005 totaling approximately US$3.5 to US$3.8 million.
Its worldwide workforce will be reduced from 1,176 employees at the end of the third quarter of 2004 to approximately 1,040 employees by the second quarter of 2005.
Management will provide further details on its fourth quarter financial results conference call scheduled for February 10.