Juniper Networks (JNPR) approves expansion of restructuring plan

Juniper Networks (NYSE: JNPR) disclosed:

On September 29, 2023, Juniper Networks, Inc. (the “Company”) approved a restructuring plan intended to reallocate resources to efficiently support its strategic priorities (the “Plan”) as contemplated in the Company’s outlook and guidance provided in the Company’s earnings report on July 27, 2023. The Plan is the result of a thorough review of the Company’s business objectives, and is intended to focus on realigning resources and investments in long-term growth opportunities. The Company believes the Plan will further allow it to continue to prudently manage operating expenses in order to deliver improved operating margin.

Total costs currently estimated to be incurred in connection with the Plan are approximately $59 million, of which approximately $48 million are expected to result in cash expenditures.
The Company expects to reduce worldwide headcount by approximately 440 and estimates that it will incur cash charges for severance and other related employee termination expenses of approximately $40 million. In addition, the Company expects to incur other restructuring and related costs of approximately $19 million.

The actions taken under the Plan are expected to be substantially completed by the end of the first quarter of fiscal 2024, though certain potential position eliminations are subject to local law and consultation requirements, which may extend the workforce reduction process beyond that date in certain countries. The actual timing and costs of the Plan are based on a number of assumptions, and actual timing and amounts may differ materially from the Company’s current expectations and estimates.

Additionally, on September 29, 2023, the Company approved an expansion of the restructuring plan approved during the first half of 2023 and previously disclosed in our quarterly report for the quarter ended June 30, 2023 of approximately $14 million in costs relating to asset impairments.

Item 2.06 Material Impairments.
Certain of the disclosures set forth above in Item 2.05 are also responsive to Item 2.06 and are incorporated by reference herein.

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