Symantec wields axe after poor quarter

Symantec is planning to cut its payroll costs by 5% in a bid to reduce expenses after a disappointing 2007 third fiscal quarter, it said last week.

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By  Administrator Published  February 1, 2007

Symantec is planning to cut its payroll costs by 5% in a bid to reduce expenses after a disappointing 2007 third fiscal quarter, it said last week.

The firm, the world's largest provider of security software, currently employs nearly 17,500 staff. Executives said the cuts would help it to realise annual cost savings of approximately US$200million.

The job losses will mainly affect corporate functions with a minimal impact on engineering and customer facing staff, Symantec chairman and chief executive John Thompson said in a conference call.

Symantec's Middle East operation declined to provide a comment on whether the cuts would impact the region.

The firm has also frozen hiring, although it said research and development groups in India and China will be exempt from this measure.

For its third quarter ending December 29, Symantec recorded net income of US$114million, up 25% year-on-year, and revenue of US$1.31 billion, an increase of 6% over the previous year.

The overall performance was dragged down, however, by Symantec's data centre management business, which slipped 8% on the year before to US$343million.

Whilst it may be tightening its belt on resources, however, Symantec is still pursuing acquisition opportunities. This week it signed an agreement to acquire IT management software provider Altiris for US$830million. Thompson said the deal would offer customers a more comprehensive solution set.

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