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Symantec reveals major job cuts

(Image credit: Image Credit: Symantec)

Symantec has revealed that it will cut eight per cent of its global workforce in an effort to boost profit margins after closing fewer deals than expected so far this year.

The security firm's stock, which has been down by 27 per cent this year, fell by an additional ten per cent in after-hours trading following the news.

To make matters worse, Symantec is also currently involved in an internal investigation related to its accounting practices. Back in May when the firm first disclosed the investigation, its stock fell by 20 per cent.

By cutting its global workforce by eight per cent, Symantec expects to reduce costs by $115m annually. As of March 2017, the California-based company employed 13,000 staff which means that around 1,000 workers will be let go as a result of the new job cuts.

During a conference call with analysts, Chief Financial Officer Nick Noviello explained how the workforce reductions would affect its business, saying:

“We expect that these actions will partially benefit fiscal year 2019 operating margins and will have full effect to fiscal year 2020.”

Symantec now expects adjusted revenue of between $4.67bn and $4.79bn for this fiscal year which ends in March 2018. This is down from its original forecast of $4.76bn to $4.90bn as well as from analysts' expectations of $4.84bn.

Image Credit: Symantec

After getting his start at ITProPortal and then working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches to how to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.