Teradata announced last night that it has realigned its sales function and initiated global restructuring and cost reduction actions “to optimize operations, reduce non-revenue generating expenses, and drive efficiencies for long-term growth and profitability,” resulting in a reduction of approximately 9% to 10% of its global workforce that is expected to result in: Operating expenses reducing by approximately $75M to $80M on an annualized run rate. Teradata expects to re-invest a portion of this amount back into revenue generating growth areas; Total cash expenditures from severance payments of approximately $45M to $50M, of which payments in 2024 are approximately $30M to $35M. The remaining payments will be made in 2025; on-GAAP operating profit to benefit by approximately $15M to $20M in 2024.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on TDC:
- TDC Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Teradata price target lowered to $40 from $44 at RBC Capital
- Teradata initiated with a Sell at UBS
- Cantor Fitzgerald software analysts hold an analyst/industry conference call
- DA Davidson technology analysts to hold an analyst/industry conference call