According to a press release from the company, it will cut roughly 620 workers, which comes to 9% of its workforce. The company says that these layoffs should go into effect by tomorrow, excluding its Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC) regions.
F5 is expecting annual savings of $130 million with the layoffs announced today. The company also notes it expects to suffer a $45 million charge connected to severance and benefits with these layoffs.
In addition to this, F5 points out that these layoffs will result in footprint reductions in some regions. other cost-saving measures include more scrutiny for future projects, cutting travel, as well as decreasing its corporate bonus pool for 2023.
What the Future Holds for FFIV Stock
The latest F5 layoffs were announced in the company’s fiscal Q2 2023 earnings report. Company president and CEO François Locoh-Donou provided guidance for fiscal 2023:
“Given the persistent macro uncertainty and its impact on customer spending, we now expect low-to-mid single-digit revenue growth in fiscal year 2023 with non-GAAP operating margins of approximately 30% and non-GAAP earnings growth of 7% to 11%.”
FFIV stock is seeing heavy trading on the layoffs and earnings news. This has some 700,000 shares on the move as of this writing. For comparison, the company’s daily average trading volume is about 541,000 shares.
FFIV stock is down 3.3% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.