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Infinera Reorganization Is Underway
Dec 19, 2018

In a statement submitted to the US Securities and Exchange Commission (SEC), Infinera said that for the ongoing restructuring, the company will record a $6 million to $8 million in expenses, including "severance and employee-related expenses." Infinera did not disclose the scale of layoffs.

 

After completing the acquisition of Coriant in early October this year, Infinera added approximately 2,100 employees, more than 1,600 patents and more than 600 customers worldwide. As of December 30, 2017, Infinera had a total of 2,145 employees, of which approximately 1,300 were outside the United States. Therefore, after the acquisition of Coriant, the company's total number of employees reached 4,245.

 


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Infinera faces some challenges while streamlining operations. The company must retain major customers related to long-haul WDM services such as CenturyLink and Level 3, and it also needs to successfully integrate its ICE products into Coriant's products to create products with more competitive prices and performance. In 2021, it reached the goal of combining $250 million in synergies.

 

There is no doubt that mergers and acquisitions, especially horizontal mergers, will inevitably lead to layoffs. There are many ways to save on operating expenses (OpEx), such as reducing redundant office leases, but a large part of it is to lay off employees. How much Infinera will cut down, but also wait until its 10Q report is released. The good news for Infinera is that the (pre-Coriant) Groove 30 compact modular DWDM system performs well in the popular DCI (Data Center Interconnect) field. In fact, Cignal AI analyst Andrew Schmitt spent, the combined share makes Infinera the second strongest in the DCI market after Ciena. DCI is the only segment in the optical market that exhibits double-digit growth.


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