Akamai Technologies (AKAM) Cutting 110 Employees

November 19, 2008 5:33 PM EST

Akamai Technologies (Nasdaq: AKAM) announced that it is taking actions to reduce its operating costs. These initiatives include a reduction in its global workforce of approximately 110 employees, or seven percent of its employee population.

As a result of these cost-cutting measures, Akamai expects to incur aggregate restructuring charges and other costs of approximately $4.0 million in the fourth quarter of 2008. These anticipated charges consist of approximately $3.8 million for severance and similar personnel-related expenses and approximately $0.2 million in other costs. These costs are expected to be partially offset by a net reduction in non-cash stock-based compensation of $0.8 million, reflecting a modification to certain stock-based awards previously granted to the affected employees. Additionally, the Company expects to recognize a loss on sublease income of approximately $2.5 million related to certain leased facilities. Akamai Technologies expects to incur total cash expenditures of approximately $6.0 million in connection with these cost-reduction measures.

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