1000 Jobs Cut At Symantec
Symantec has cut its workforce by 8 per cent, or by 1000 workers, after a string of negative events ranging from weak sales, internal investigations and dubious accounting practices.
The stock market responded by punishing the anti-virus company, which lost 10 per cent of its share value in after-hours trading following the news. Symantec is down a full 27 per cent this year.
Internal investigations at the company were initially enquiring whether their accounting is up to scratch, however in a more recent statement Symantec has said that its most recent results will also be investigated. The announcement of the initial investigation caused the stock price to crash by 20 per cent earlier this year.
The jobs cut is intended to push revenue higher, with savings of US$115 million being projected. CFO Nick Noviello explains “We expect that these actions will partially benefit fiscal year 2019 operating margins and will have full effect to fiscal year 2020”.
Projected revenues are down to between US$4.67 billion and US$4.79 billion for the year ending March 2019, from previous forecasts of between US$4.76 billion to US$4.9 billion.
First quarter overall revenue slipped 1.6 per cent as enterprise sales weakens and a failure to lock in long-term security contracts.
The company reported a first quarter net loss of US$63 million, compared to the US$133 million loss they suffered a year earlier.
Symantec is trading at 34 cents per share, a cent higher than analysts expectations.