As part of a restructuring effort, Blue Coat Systems said it plans to slash nearly 20 percent of its workforce. The firm will issue about 280 layoffs in all and close its facilities in Riga, Latvia, South Plainfield, New Jersey, and Zoelemeer, Netherlands.
At the same time, Blue Coat announced plans to acquire S7 Software, a services company out of Banglaore, for $5.25 million in cash. The acquisition will also add 65 employees to Blue Coat's workforce.
"The combination of the restructuring program and the acquisition of S7 Software strikes an appropriate balance between profitability and investment for innovation," said Gordon Brooks, senior vice president and chief financial officer. "Together these actions will allow us to invest for future growth while aligning the Company’s cost structure to its current revenue level, which should drive higher and more consistent levels of profitability."
In addition to the layoffs, Blue Coat will relocate an undisclosed number of engineering jobs from its Sunnyvale, California, and Austin, Texas offices to S7's offices in Bangalore and a few other locations. After factoring in S7's employees and a few new hires, Blue Coat's workforce reduction will be closer to 10 percent.