F5 retrenchments hit S'pore, Asia

By '">Nawaz Marican, Singapore.CNET.com, CNET.com
Friday, February 02, 2001 05:48 PM
SINGAPORE--F5 Networks Singapore Pte Ltd has confirmed that employees here were affected by its parent company's cut of 100 people.

"In line with the company's worldwide restructuring exercise, F5 has undergone its own assessment of corporate and market needs for the Asian region.

"...we have made adjustments accordingly," locally-based spokesperson Ann O'Rourke told Singapore.CNET.com.

When asked for specifics, O'Rourke said: "I can't breakdown the figures. I am not allowed to say anything."

She also declined to comment when asked about compensation packages for affected employees.

On Tuesday, F5 Networks Inc, a maker of equipment to manage Web traffic, said it fired 17 percent of its workforce, or about 100 people, to cut costs as part of a reorganization.

According to an earlier Bloomberg report, F5 chief financial officer Robert Chamberlain said the company announced last month that it would cut workers but did not specify how many at the time. On Wednesday, Chamberlain said F5 completed the job cuts in January. The company had 585 workers before the layoffs and has 488 now. Chamberlain declined to give the exact number of people who were fired.

Seattle-based F5 said the company expects to reduce operating expenses by US$7 million to US$8 million over the rest of the fiscal year. Including tax benefits and a restructuring charge of US$1.1 million, F5 said its fourth-quarter net loss was US$8.9 million, or US$0.41 a share, compared with net income of US$4.24 million, or US$0.18 a year earlier.

F5 shares last traded at US$15.62, down US$1.38 on the Nasdaq.

The company has offices in US, France, Sweden, Germany, UK, Finland, Australia and Singapore.


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