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Extreme Networks restructures again, promises SDN pivot

Global workforce to be cut by 18 per cent in search of savings

A large hand flicks an icon of a little red man. Image via shutterstock (Lasse Kristensen)

The indifferent revenue growth and ongoing losses announced earlier this month are having the usual effect on vendor Extreme Networks: it's announced a restructure.

On May 6 the sixth CEO to pass through Extreme's C-level rotating door in nine years, Ed Meyercord, called the latest quarter's results “disappointing”, a pretty clear signal that blood will flow.

The company's 8-K form says Extreme is cutting 18 per cent of its global workforce, with 285 positions to go in “the majority of company departments, and both domestic and international locations”.

The restructure will cost between $US13 to $15 million but save a total of $40 million in financial year 2016, the company says.

Spinning the restructure, the company managed to avoid mention of the number of jobs to go.

Instead, it emphasised a “strategy centred on software and service led solutions and a definitive transformation in how the company goes to market”.

Hardware is getting downvoted, it seems: Extreme will develop its software-defined network business, and “expand its investments in cloud solutions”.

EOS software and hardware platforms will get continued investment, and there will be accelerated investment in its EXOS – Extreme XOS – platforms to “better take advantage of market advancements in networking technology”. ®

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