QUEBEC CITY – EXFO has unveiled an accelerated integration plan for two of its recent acquisitions that will see the company recognize savings of over US$10 million but slash its workforce.
The network test and monitoring technology maker pledged to fast-track the integration of Astellia’s and Ontology’s products with its own to create and offer a common monitoring and analytics platform. EXFO said that this highly differentiated platform, with big data capabilities, will address critical visibility and quality of experience issues for communications service providers as they invest in the digital transformation of their networks. It added that it will continue to invest in the business areas and product lines affected by the reorganization.
EXFO also said that it will simplify its corporate structure and optimize its resources, which includes cutting its workforce by less than 5%. The reorganization will allow it to benefit from annualized cost savings of US$10.5 million, though projects it will incur US$8.0 million in restructuring costs, including US$6.0 million in severance expenses, continued the company.
“Although we have made difficult decisions, I am convinced they will provide EXFO with a greater focus and differentiated portfolio to move the company ahead of the market,” said EXFO’s CEO Philippe Morin, in the announcement. “Communications service providers are embarking on massive transformations of their fiber and 5G network infrastructures, while increasing investments in analytics, virtualization and IoT solutions. Through this reorganization, we are putting the right resources in the right places to increase EXFO’s efficiency, agility and value to customers, while improving profitable growth.”
EXFO added that the moves will allow it to focus more efficiently on high-growth areas in the test, monitoring and analytics markets, such as fibre, network virtualization and 5G deployments, plus reallocate selected resources to better serve customers in key geographic regions.
