AVYA - Avaya plans job reductions to hit $250M cost-cut goal
- Avaya Holdings ( NYSE: AVYA ) is undertaking a number of cost-reduction steps, including job cuts.
- In an SEC filing , Avaya ( AVYA ) said it's authorized a reduction in force that will help add to a combined $250M in annual cost reductions, which will allow the company to hit the higher end of its July 28 goals for $225M-$250M in cost cuts.
- The force reduction "better aligns the size of Avaya’s workforce with its operational strategy and cost structure," the company said.
- Avaya expects to incur $23M-$26M in pretax restructuring charges, all of which it expects in cash-based expenditures, and substantially all of which are tied to severance and termination benefits.
- It said it expects to recognize substantially all of the charges in the fourth fiscal quarter.
- Avaya shares pulled off a relief rally Tuesday, coming back from the long weekend with a 24% gain on volume that doubled its usual daily average. Avaya is down 83% in six months, but it's more than doubled over the past month.
- Following the news of job cut plans, Avaya stock is up another 2.8% postmarket.
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Avaya plans job reductions to hit $250M cost-cut goal