Juniper Networks is known as the best payer of staff in Silicon Valley. As a result its staff tend to be happy and work rather well.
Now according to Quartz, a dumb arse activist hedge fund wants to put a stop to Juniper doing that and make engineers work for much less.
Elliot Management revealed it has built a 6.2 percent stake in the company and is now pressing for wage cuts to revive the company’s flagging share price.
Elliot also thinks that the company is spending too much on research and development. Everyone knows you do not need R&D in the tech industry – you can rely on the same product making you money for hundreds of years.
In a presentation to investors, the fund cites Juniper’s generous salaries to support its claim that the company spends too much.
It wants the company to cut costs by $200 million a year as well as streamlining its disparate portfolio of products. The goal is not to make a better company, or better products, but to give $3.5 billion in cash to shareholders through buybacks and dividends.
It thinks that the share price could be worth up to $40, compared to $25.50 currently. However, no one will want to work at the company, and it will lose technology ground to Cisco, but hey, shareholders will get more money.