Web services company Akamai Technologies is laying off nearly 3 per cent of its global workforce, as it focuses on the highest growth areas and sustaining profitability.
According to reports, the layoffs are likely to impact about 300 employees.
The US-based internet company announced the layoffs during its financial results for the quarter that ended March 31.
“We are very focused on managing costs and deploying resources where they generate the best long-term returns. As one part of this effort, we plan to reduce our worldwide workforce by a little less than 3 per cent this quarter,” said Tom Leighton, Co-Founder, CEO and Director.
“This was a difficult decision, but it was necessary for us to prioritise investments in the areas with the greatest potential for future growth as we strive to deliver greater value for shareholders,” he told analysts.
The company did not provide either geographic or organisation-specific details of the workforce reduction.
During the first quarter, the company recorded a $45 million restructuring charge, primarily related to severance costs, along with facility-related charges as it continues to reduce its real estate footprint.
For the first quarter, Akamai reported $916 million in revenue, a 1 per cent increase over the year-ago quarter. The profit was $97 million, a 27 per cent drop.
“While this is a time of substantial macroeconomic uncertainty, I believe that it is also a time of great future opportunity for Akamai as we bring new security and compute capabilities to market and as we deploy Akamai Connected Cloud,” said Leighton.
Last year, Akamai acquired Linode, an infrastructure-as-a-service (IaaS) platform provider, for $900 million.