Juniper CEO vows internal overhaul

Speaking to investors at the company’s annual shareholder meeting today, Juniper Networks chief executive officer Scott Kriens vowed to improve the router vendor’s efficiency and productivity.

“While we’ve had success, the company has grown very rapidly, and in the process, our execution and efficiency and productivity have not kept up with our growth,” Kriens said, adding that the company was engaged in a three-pronged effort to improve those areas as well as “improving the quality of our leaders.”

With just over 5000 employees, Juniper has grown its headcount 22% from a year ago. But its average revenue per employee dipped 4% last year to less than $475,000. By comparison, Juniper’s much larger rival, Cisco Systems, which ended its most recent fiscal year with nearly 50,000 employees, reported more than $570,000 in average sales per employee for the fiscal year that ended last July.

At year’s end, 43% of Juniper’s employees worked in research and development, and 33% worked in sales and marketing.

Kriens’ comments on increasing productivity came the same week some Juniper insiders expect a significant reorganization of the company, including workforce reductions in some areas and re-assignments in others. Today, however, Kriens did not detail any specific actions to be taken by the company or make suggestions about the specific timing of any changes. Part of the company’s efforts will be focused on improving internal processes and practices, he said.

The CEO’s comments were consistent with references he made in April to an ongoing “comprehensive program” to make internal improvements spearheaded by Stephen Elop, an outsider Juniper named to the newly created position of chief operating officer in January.