Avaya has announced that it plans to cut nearly 2,500 jobs and take a $US150 million charge in its fourth quarter, as the company continues a restructuring effort.
During its third-quarter earnings announcement, Avaya said that it planned to take a charge of between $150 million and $250 million for the fourth quarter. In a statement, the voice and data network provider updated this figure to say the charges will fall on the low end of this range and 2,500 positions will be reduced. Other costs in the restructuring stem from real estate cutbacks and IT-related expenses.
The $150 million in charges will be itemised as follows:
* Approximately $68 million for workforce reductions.
* Approximately $60 million to $65 million for real estate consolidations and lease terminations.
* Approximately $15 million for the depreciation of assets.