March 15, 2007 12:31 PM PDT

Symantec cuts jobs to reduce costs

Symantec this week started sending out pink slips to employees across the company as part of a cost reduction effort.

The Cupertino, Calif.-based security and database management software maker in January set a goal to reduce its cost structure by $200 million. As part of that, an unspecified number of employees are now being let go, Melissa Martin, a Symantec spokeswoman, said Thursday.

"We're reducing (our) head count cost by 5 percent," Martin said. She declined to say how many employees would be affected by the layoffs. Symantec employs about 17,500 people worldwide.

After a disappointing quarter for its enterprise business, Symantec in January said it would cut costs by $200 million to align its expenses with its revenue expectations.

To achieve that target, the company said it would trim its workforce, reduce new hires, consolidate facilities and cut spending on contractors, consulting and travel.

Symantec's shares were trading at $16.51, off slightly from the $16.55 opening price on the Nasdaq exchange. The stock fell sharply in mid-January after Symantec warned that results for the three month-period ending December 29 would be lower than forecast. For the quarter, Symantec reported net income of $114 million on $1.31 billion in revenue.

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7 comments

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Symantec continues ot go on a buying binge of companies. They destroy the technology they aquire, and hence continue to muddle along. If they did not enjoy such tremendous success in the Anti-Virus segment, they would have sunk long ago. Unless they start to focus on their own products and do a little innovation, the entire company will be in as bad of shape as their new aquisitions are the minute they sign the dotted line.
Posted by symantecb4 (1 comment )
Reply Link Flag
do less for more.....
one thing is for sure.. if they were able to hold on to all the tech stashed on the shelves during those acquisitions.. they should be in good shape... but I doubt all that old tech gets repurposed properly
Posted by wone123 (32 comments )
Link Flag
Agreed
We have moved alway from two products because symantec purchased them and ruined it and will be removing a third. BackupExec has become a nightmare and IMLogic is following suit. We already ditched their Corporate AV for another vendor. Their tech support is awful and it is only going to get worse as they reduce headcount. Our plan is to remove all Symantec products from our company. I just hope symantec will stop buying companies that make software I like. I HATE SYMANTEC!!!!!
Posted by ZeroJCF (51 comments )
Link Flag
Here's a good way for Symantec to cut costs:
Ditch the offshore call center. From the customer's viewpoint it's worse than useless anyway.
Posted by extinctone (214 comments )
Reply Link Flag
Re: Here's a good way for Symantec to cut costs
Yea, well unfortunately, companies don't care about the low
quality support they provide to customers by using offshore call
centers.

Other large tech companies I'm stuck dealing with do the same
thing. They get plenty of complaints, but they do nothing. That
tells me, as a customer, they don't care about providing their
customers with inferior quality technical support.

Watch. Grossly overpaid as Symantec's upper management
probably is (by any "normal" person's standard), the board that
is supposed to be acting in the best interest of the stockholders
will somehow justify giving them a raise, even as the people
mentioned in this article loose their jobs.

I'd like to see another article after their "reorganization" is over
with that has a before/after snapshot of Symantec's upper
management compensation. For real.

How about it CNet? A story about whether or not Symantec's
upper management shared in their employees grief during this
"reorganization", or profited from it with raises, more stock
options, and bigger bonuses.

Charles R. Whealton
Charles Whealton @ pleasedontspam.com
Posted by chuck_whealton (521 comments )
Link Flag
Seems Like They Should Downsize The Software Instead
I can't believe how bloated a lot of "enterprise" software is. I see antivirus, antispy, and backup software that uses less than half the resources of Symantec's and does as good a job, if not better. When I need a software solution, I start with the low-end, simple, one-function products and work my way up from there. Smaller software companies tend to be better focused (maybe because they are leaner), and don't try to be all things to all people. There is a pernicious feature-creep that tends to occur with larger software companies. Perhaps it is tied to Wall Street analyst expectations -- i.e. "We have to keep adding features so we can release new versions every 6 months so we can convince Wall Street we are "growing".
Posted by Stating (869 comments )
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They were warned
Technologically, symantec used to be great. Now they're the typical bloated beast, uncaring and unthinking when it comes to consumer requirements. After advancing the intelligence to them several times and getting less than an enthusiastic reception and that airy, arrogant attitude, I laugh loud and long.

- asked if they could make value offerings for the consumer - nope they are merely a money glutton now.
- The ceaseless whineware is aggravating at best.
- Support, including pre-sales absolutely sucks.

I have not recommended symantec to anyone in a great many years.
Posted by Dragon Forge (96 comments )
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