No surprise: More cuts in the media/tech business. Content delivery network Akamai Technologies (AKAM) will lay off 110 employees, or about 7% of its workforce, the company said today in a filing to the SEC.
Industry watcher Dan Rayburn says the cuts are across the company’s various divisions. Akamai is still hiring for some positions in its new advertising service group, according to Rayburn.
Akamai detailed the charges it’ll incur:
As a result of these cost-cutting measures, the Company expects to incur aggregate restructuring charges and other costs of approximately $4.0 million in the fourth quarter of 2008. These anticipated charges consist of approximately $3.8 million for severance and similar personnel-related expenses and approximately $0.2 million in other costs. These costs are expected to be partially offset by a net reduction in non-cash stock-based compensation of $0.8 million, reflecting a modification to certain stock-based awards previously granted to the affected employees. Additionally, the Company expects to recognise a loss on sublease income of approximately $2.5 million related to certain leased facilities. The Company expects to incur total cash expenditures of approximately $6.0 million in connection with these cost-reduction measures.
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