FireEye plans layoffs as it cuts forecasts, misses sales target

Attendees walk by the FireEye booth during the 2016 Black Hat cyber-security conference in Las Vegas, Nevada, U.S. August 3, 2016.

Reuters/David Becker

Cybersecurity firm FireEye Inc said it planned to layoff 300 to 400 of its 3,400 workers as it announced quarterly sales on Thursday that missed its own forecast and the company also cut its full-year outlook.

Chief Financial Officer Michael Berry told Reuters that the job cuts were part of a restructuring effort that will reduce annual costs by about $80 million.

He said the business was not growing as quickly as anticipated because of a revenue slowdown at its services division, which helps businesses respond to cyber attacks.

FireEye shares were down 16 percent at $14.07 in extended trading on Thursday.

(Reporting by Alan John Koshy in Bengaluru; Editing by Savio D’Souza)