Overseas staff won't be spared in Extreme jobs cull

Plan to chop 285 positions will encompass 'majority of departments, and both domestic and international locations'

Staff at Extreme Networks' international offices will not escape the latest round of redundancies at the networking vendor as it looks to slim its global workforce by almost a fifth.

The NASDAQ-listed firm announced yesterday it will eliminate about 285 positions – or 18 per cent of total headcount – in an effort to trim $40m (£25.5m) from its annual cost base.

The cost-cutting drive, by no means its first in recent years, comes after Extreme swung to a $23.5m quarterly loss and was billed as "a first step" in its new strategy to focus on software.

It will encompass "the majority of company departments, and both domestic and international locations", Extreme said in an 8-K filing last night.

Extreme chief executive Ed Meyercord said the cull will pave the way for the vendor to execute a new operating plan following a review process in January that included input from analysts, customers and partners.

"The resulting feedback pointed to a clear-cut strategy centred on software and service-led solutions and a definitive transformation in how the company goes to market," he said.

"There are very few competitors offering a complete bundle of networking solutions with acceptable levels of customer service in our target market. This is our opportunity."

Extreme stumbled to a GAAP net loss of $23.5m in the three months to 31 March on revenues that tanked 16 per cent year on year to $119.6m.

The vendor said it expects to incur restructuring charges of between $13m and $15m in its current quarter for employee-related termination benefits, including severance payments.