November 19, 2008, 7:38 PM — CAMBRIDGE, Mass. (AP) _ Akamai Technologies Inc., a Web content provider, said Wednesday it is cutting 7 percent of its work force in the fourth quarter as part of a restructuring to save on costs.
The company said about 110 employees will be affected. It will take a restructuring charge of $4 million for severance and related expenses.
Akamai said it also expects to recognize a loss on sublease income of about $2.5 million related to certain leased facilities. But those losses will be partially offset by a net reduction in non-cash stock-based compensation of $800,000, from the stock-based awards previously granted to the affected employees.
Akamai said in a news release it will use the money it saves, along with other income, to increase investments in key areas like content delivery, application acceleration, advertising industry solutions and international expansion.
"We have not changed our business outlook," Chief Financial Officer JD Sherman said in a news release. "However, we want to ensure that we can keep investing for growth even in the current economic climate."
The announcement came after the market closed Wednesday. Akamai's shares fell $1.27, or 11 percent, to close at $10.63.
