Aviat Networks Targets Savings Under Restructuring Plan Including Job Cuts
Aviat Networks said it plans to save between $4 million and $5 million by the end of fiscal 2015 plus incremental cost savings of approximately $10 million to $12 million in fiscal 2016 under a restructuring plan that includes reducing the global workforce.
The supplier of microwave networking solutions said it plans to also make savings from non-headcount cost cuts and said the actions are expected to return the company to profitability.
To implement the cost cuts, Avian Networks said it expects to incur between $6 million and $7 million in cash payments, primarily for severance and employee-related charges.
“While the long-term outlook for microwave and millimeter wave wireless transport remains positive, management is committed to running Aviat Networks as a profitable, cash generating business and these restructuring actions are a critical step in accomplishing these objectives, CEO Michael Pangia said in a statement.
AVNW closed in the lower half of the 52-week range between $0.99 and $2.07 on Monday. It was inactive in recent pre-market trade.