Avaya to Cut 1,900 Workers, Sell Stock
News of the cuts, amounting to 8.3 percent of the company's workforce, came as Avaya announced that its revenues for the present fiscal quarter, which ends March 31, will be lower than expected. Avaya now projects that its revenues for this quarter will be between $1.24 billion and $1.275 billion, compared to the previously stated projection of between $1.254 billion and $1.358 billion.
Avaya also planned to sell $90 million worth of stock to investment group Warburg Pincus Equity. The company said it might offer an addition $100 million in common shares to increase its supply of liquid cash and help repay bank debts.
Further details about the restructuring were not released.