2008-11-01
Abstract
Cutbacks in effort to keep spending under control.
Copyright © 2008 Virus Bulletin
Symantec chiefs announced this week that the company is in the process of a ‘reduction in force’ alongside other budget-scrimping measures that include cutting down on travel expenses and other discretionary purchases.
Speaking at the company’s second quarter 2009 earnings conference call, Symantec’s CFO James Beer said that the company plans to cut its head count budget by 4.5%. Although he wouldn’t be drawn on the number of job losses anticipated, he revealed that the company’s current work force stands at just under 18,000 employees. Symantec has also recently outsourced parts of its internal IT and finance back office operations and, Beer revealed, is in the process of outsourcing its European manufacturing operations from Ireland to the Czech Republic.
While, according to CEO John Thompson, the company generated year-over-year growth in revenue, demonstrated solid progress on its goals for operating margins and delivered strong earnings growth, the second quarter saw costs rise as the company completed its acquisition of spyware specialist PC Tools in October.
Earlier in October the firm, which in the past has had something of a reputation for making regular acquisitions, announced a definitive agreement to acquire software-as-a-service security specialist MessageLabs – paying a purchase price of approximately $695 million in cash. The deal is not expected to close until the back end of the December quarter.
