LONDON—Test and measurement technology developer Spirent Communications plc announced plans to restructure its Performance Analysis and Service Assurance units in the face of “significant product transition” this year. The company said the moves would save more than $16 million in costs annually, though a one-time charge of about $9 million will be reported in the firm’s Aug. 10 financial report.
Spirent said it plans to “realign resources and reduce operating expenses” in order to “manage the balance between the cost base and maintaining the capability to generate long term growth.”
While the company made no mention of job cuts in its press release, reports have surfaced indicating that the British firm intends to cut jobs, primarily from its Service Assurance group, which the company said will absorb the brunt of its restructuring actions since the group’s legacy product revenues continue to decline as investments rise in new monitoring solutions for voice, video and data networks. Spirent said it hopes the changes enable Service Assurance to come close to breaking even in the second half of this year.
“The main consideration behind these restructuring actions is to ensure that our resources are allocated appropriately to develop our enhanced products,” stated Anders Gustafsson, chief executive officer at Spirent. “This will ensure that we can offer the platforms required by network equipment manufacturers for the development of their own products, and by service providers for the deployment of their next-generation networks.”
