Symantec to Cut 1,700 Jobs (SYMC)
On Thursday, tech-focused online publication AllThingsD reported that software security company Symantec Corporation (SYMC) will begin to layoff about 1,700 employees.
These job cuts are a part of an ongoing, company wide restructuring plan that was announced in January. Steve Bennett, Symantec’s CEO who joined the company just under a year ago, instituted the restructuring plan to streamline business segments as part of a turnaround strategy.
In its annual report in May, Symantec said it will be taking $220 million to $250 million in charges related to the restructuring plan by the end of fiscal 2014, which ends next March. But, only $10 million worth of those charges have been taken so far, meaning the largest amount of job cuts is on the horizon.
Since January, the company has been eliminating jobs here and there, but this latest report suggests that these job cuts are the biggest yet.
The layoffs will come in two stages; first about 1,000 employees will be let go in the coming days, then about 700 positions will be cut in July. Middle-management positions are expecting to be the hardest hit.
The 1,700 workers losing their jobs represents 8% of Symantec’s entire workforce.
Investors seemed to be please with the report yesterday, as SYMC shares were up 1.40% on the news.
Symantec shares were inactive during pre-market trading on Friday. The stock is up +19.5% year-to-date.
The Bottom Line
Shares of Symantec Corp (SYMC) have a dividend yield of 2.67% based on last night’s closing price of $22.49 and the company’s annualized dividend payout of 60 cents per share.
Symantec Corporation (SYMC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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