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Akamai cuts 5 percent of workforce as Q4 tops expectations


Akamai said that it is has cut about 5 percent of its workforce in “targeted areas” of its business, notably its media unit.

The restructuring was outlined on a conference call following Akamai’s fourth quarter earnings report. Leighton said:

As part of our effort to improve operational efficiency, we reduced headcounts in targeted areas of business, most notably in areas tied to our media business. Overall, we’ve removed about 400 positions or 5% of our global workforce in a series of actions that began last quarter and that continued this week.

The company took a $52 million restructuring charge in the fourth quarter.

For the fourth quarter, Akamai reported fourth quarter earnings of $19 million, or 11 cents a share, on revenue of $663 million, up 8 percent from a year ago. Non-GAAP earnings for the fourth quarter was 69 cents a share. Wall Street was expecting earnings of 63 cents a share on revenue of $649.1 million.

Akamai saw strong growth it its Web division, up 17 percent from a year ago, and enterprise and carrier unit, up 24 percent. The media division, Akamai’s unit that speeds up Web pages, saw fourth quarter revenue fall 3 percent.

Security related tools fared well both on-premises and in the cloud.

For 2017, Akamai reported net income of $453 million, or $1.26 a share, on revenue of $2.5 billion, up 7 percent from a year ago.

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I'm a 50 year old PLC programmer from Burnley, UK. I severed my time as an electrician in the baking industry and soon got involved with the up and coming technology of PLC's. Initially this was all based in the Uk but as the years went by I have gradually worked my way around the globe. At first it was mainly Mitsubishi with a bit of Modicon thrown in but these days the industry leaders seem to be the Allen Bradley range of PLC and HMI’s.

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