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Possibility of 10-15% job cuts in Juniper’s India unit amid HPE partnership

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In Short:

Juniper Networks is expected to cut 10-15% of its employees in India as it merges with Hewlett Packard Enterprises. This move is aimed at driving cost synergies and delivering value for shareholders. The acquisition is part of HPE’s strategy to double down on the enterprise networking business and take on competitor Cisco. The merger is expected to be completed by 2024 or 2025, with minimal disruption to customers.

Juniper Networks to Cut Jobs in India as it Merges with HPE

Networking products and solutions company Juniper Networks is expected to shed 10-15% or nearly 500 employees from its India unit as it merges with Hewlett Packard Enterprises (HPE).

Details of the Merger and Job Cuts

A source informed ETTelecom that the job cuts are a logical step after the merger with HPE. Once the regulatory process is complete, the India headcount may see a reduction of 10-15%.

Currently, Juniper Networks employs close to 3,500 individuals in India.

HPE acquired Juniper Networks at $40.00 per share, amounting to an equity value of $14 billion. The functions that may feel the impact include sales and marketing, shared services, product development, and research and development.

Rohan Dhamija, managing partner at Analysys Mason, mentioned that these cuts are common during mergers to drive cost synergies and deliver value for shareholders.

Future Plans and Integration

Both companies expect to close the merger before the end of CY2024 or early 2025. HPE’s spokesperson stated that they will evaluate team structure, talent needs, and overall operations to ensure business continuity.

Currently, since the acquisition is under regulatory review, both entities continue to operate separately. Decisions about the post-close organization, including staffing changes, have not been finalized.

Industry Impact and Competition with Cisco

The acquisition of Juniper Networks is aimed at doubling down on the enterprise networking business and competing with arch rival Cisco. Juniper Networks aims to accelerate growth in AI, data center, service provider, and cloud segments.

Cisco’s market share in the enterprise WLAN sector stands at 42.6%, compared to HPE Aruba Networking’s 14.6% and Juniper Networks’ 4.1% in 2023, as per IDC findings.

HPE mentioned in a statement that the proposed acquisition of Juniper Networks will allow them to deliver more innovation and change the dynamics of the networking industry.

Previous Layoff Announcements

In a US SEC filing last year, Juniper Networks stated that it would lay off around 400 employees across locations by the end of Q1 2024. The company, founded by Indian immigrant Pradeep Sindhu, employs over 10,000 people globally and has a significant development center in Bengaluru.

In 2015, HPE acquired Wi-Fi gear company Aruba Networks in a $3 billion deal to strengthen its position in the networking space.

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