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