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Thursday, Feb 22, 2024

Ixia Restructuring Includes Layoffs

Network equipment testing firm Ixia expects a savings of $6 million through a restructuring that includes cutting up to 10 percent of its global workforce. The Calabasas-based company will write down $1 million to $2 million in slow moving and impaired inventory as part of the restructuring. The company made these moves in the face of decreased revenues and profits due to the global recession, said President and CEO Atul Bhatnagar. “We continue to be cautious about the economic outlook, and we think it is prudent at this time to align our operating costs with our business opportunities,” Bhatnagar said. “These actions should put us in a better position to weather these difficult business times and should enhance our profitability as the economy, and our business, begin to rebound.” Cutting between 70 and 80 positions will cost approximately $1 million on a pre-tax basis in severance and other related costs. The layoffs are expected to be completed by the end of June. For the second quarter, Ixia has a revenue guidance of $35 million to $40 million and a loss of $0.05 to $0.10 per share. Mark R. Madler

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