Tech company Avaya Holdings is taking a number of measures to cut costs, including eliminating jobs.
In a U.S. Securities and Exchange Commission( SEC) filing, the company said it has authorized a force reduction that will contribute to overall cost savings of $250 million annually.
This will enable the company to achieve the higher end of its July 28 cost-cutting targets of $225 million to $250 million.
The force reduction “better aligns the size of Avaya’s workforce with its operational strategy and cost structure,” the company said.
Pre-tax restructuring charges of $23–$26 million are anticipated by Avaya, all of which are expected to be paid for with cash and are largely related to severance and termination benefits.
It stated that it anticipates almost all of the charges to be recorded in the fourth fiscal quarter.
After a long weekend, Avaya shares staged a relief rally on Tuesday, returning with a 24 percent gain on volume that was twice its usual daily average.
Avaya has dropped 83 percent in the past six months, but it has increased by more than twice in the last month.
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The Avaya stock is up an additional 2.8 percent post-market as a result of the job reduction plans news.
Source: Seeking Alpha