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Juniper CEO Shaygan Kheradpir Continues to Impress

TMCnet Feature

April 08, 2014

Juniper CEO Shaygan Kheradpir Continues to Impress

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By Matt Paulson
TMCnet Contributing Writer

Juniper Networks (News - Alert) Inc. Appointed Shaygan Kheradpir as the company's new CEO back in January, and at the time he promised to make several changes to the company that would help to increase efficiency. Investors had voiced their concerns that the company would be unable to cut enough costs from their program to maintain stability, but it appears that Kheradpir has reduced costs substantially.


Since commencing operations as the company's CEO, Kheradpir has maintained a company stock value well above $20 per share, which is about where the company was standing in December of 2013 before he was appointed. To help cut down the company's expenses, the popular manufacturer of networking equipment will lay off approximately 6 percent of its 9,500 employees and will stop developing products that help deliver Internet webpages.

According to Jason Noah Ader, an analyst at William Blair & Co. in Boston, these cuts will help remove the inefficiencies within Juniper's internal bureaucracy. “It's long overdue; this is a company that has been pretty badly mismanaged,” said Ader in an interview, where he went on to say that Juniper is “bloated and there are too many people reporting to too many other people and it needed to be streamlined and rationalized.”

The restructuring will result in around 570 jobs being liquidated, which will be distributed across the company's global offices. Juniper is also expecting to close about 12 percent of their global facilities.

Though the action is expected to decrease running costs of the company, Juniper will incur approximately $130 million in various penalties and fees, including $35 million in severance charges and an $85 million impairment charge. Despite this, the company appears to be in good hands under the guidance of Mr. Kheradpir. Kheradpir said in January when he accepted his new position as CEO that he would be working “as an agent of change,” which is exactly what appears to be taking place.




Edited by Alisen Downey


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