A new report details some of security vendor Symantec’s plans for returning to profitability, CRN reports.
The report from investment banker and M&A adviser Piper Jaffray includes a proposed five-step plan for improving efficiencies and cutting costs.
Symantec's enterprise business dropped 6.7% year over year in fiscal 2016.
A large part of the cost savings will come from moves such as outsourcing back office positions to India and cutting about 1,200 employees, Andrew Nowinski, Piper Jaffray senior research analyst, told CRN.
"The enterprise [business] is really being run unprofitably. … They're making a lot of very smart changes to their cost structure," said Nowinski.
Nowinski said Symantec also plans to discontinue some products, though he did not specify which ones.
Symantec, which was born and thrived under a much different cybersecurity landscape than today's climate, has been struggling over the last few years. In August 2015, Symantec sold Veritas, its data storage business, for $8 billion to a group led by Carlyle Group LP. Symantec bought Veritas for $13.5 billion in 2005.
Last month, Symantec announced that president and CEO Michael Brown was stepping down. The company also recently lowered its revenue guidance for the upcoming quarter to $873 million, down from an expected range of $885 million to $915 million.