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Extreme Networks layoff in Salem triggers state assistance; restructuring follows recent acquisitions

By RYAN LESSARD
Union Leader Correspondent

September 12. 2018 10:49PM


SALEM — More than 25 workers will be laid off by Extreme Networks locally as part of restructuring triggered by its acquisition of two companies, according to SEC filings.

In June, Extreme Networks let go between 25 and 99 employees. A rapid response team from NH Works was deployed because the number exceeded 25, but the layoff did not trigger any national notification requirement, which suggests the number was fewer than 100.

In an SEC report published in late August, the San Jose, Calif.-based company reported a reduction in its workforce in the third and fourth quarters of fiscal year 2018 “as a result of the acquisitions of the Campus Fabric Business and the Data Center Business.”

The companies acquired were Avaya Inc.’s fabric-based networking solutions business and Brocade Communication Systems' data center networking business.

The company acquired the Avaya fabric software business in July of 2017 for $79.4 million and the Brocade networking business in October of 2017 for $23 million plus deferred payments of $20 million.

The restructuring, which affected 180 employees company-wide, is expected to reduce costs and more quickly achieve their “operating margin target objectives.”

The layoffs came with its own costs.

The report noted $7.9 million in employee severance and benefits expenses for the fiscal year ending June 30.

Michael Power with the Office of Workforce Opportunity said it reached out to the company in June to provide resources and training for the affected workers.

Danielle Albert with the New Hampshire Department of Labor said the agency received no notifications under the state’s New Hampsire Warn Act, which requires companies to give advance notice to employees and state officials whenever 250 employees or more are let go, or if 25 or more employees are let go by a business where that exceeds a third of all full-time employees.

The thresholds do not include part-time and seasonal workers.

Federal WARN Act requirements trigger notification when 100 employees or more are laid off.

A search of state Department of Labor records turned up no such warnings in regard to the Extreme Networks layoff, according to Albert.

ldnews@unionleader.com


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