Juniper Networks, Inc. is implementing several initiatives under an integrated operating plan, or IOP, to right-size certain functions, including facilities consolidations, marketing program reductions, and other asset restructures.
As a part of the company’s long-term facilities plans and work force reductions, Juniper Networks plans to consolidate its facilities, which will result in the future disposal of approximately 300,000 square feet of leased facilities, representing approximately 12 percent of its global facilities square footage.
The company leases approximately 2.2 million square feet worldwide, with approximately 54 percent in North America. Its leases expire at various times through November 30, 2022.
The Company also expects to reduce worldwide headcount by approximately 6 percent. The majority of these reductions are immediate, and a significant proportion are middle management positions. The Company estimates that it will incur cash charges of approximately $35 million for severance and other related employee termination expenses in the first quarter of fiscal 2014.
Juniper Networks’ corporate headquarters are located on 80 acres of owned land in Sunnyvale, California and includes approximately 0.7 million square feet of owned buildings that it began occupying in November 2012 as part of a phased campus build-out that stretched into the first half of 2013. In addition to its owned facilities, Juniper Networks leases approximately 0.7 million square feet as part of its corporate headquarters.
In addition to leased offices in Sunnyvale, Juniper also leases offices in various locations throughout the United States, Canada, South America, EMEA, and APAC regions, including offices in Australia, China, Hong Kong, India, Ireland, Israel, Japan, the Netherlands, Russia, United Arab Emirates, and the United Kingdom.