Juniper execs say axe about to fall

Some Juniper Networks executives are anticipating a significant reorganization of the company’s ranks to occur next week. According to a source close to the company, Juniper insiders are anticipating dismissals and personnel reassignments as part of ongoing cost-cutting efforts.

A spokesperson for Juniper declined to comment.

In particular, Juniper insiders expect big changes in the company’s marketing staff and also believe employees that came to the company through its 2002 acquisition of Unisphere Networks are especially vulnerable. Unisphere’s former chief executive officer, Jim Dolce, left Juniper early last year.

Unisphere gave Juniper its first E-series broadband services routers, which analysts believe lost market share last year. “Unisphere was part of the problem in 2006,” one analyst said. But the E320, the first E-series product created entirely within Juniper, has gained ground, with significant deployment by Verizon Communications.

In a quarterly earnings call last month, Juniper’s CEO Scott Kriens said that Stephen Elop, an outsider appointed to the newly created position of chief operating officer in January, had begun a “comprehensive program to focus on business processes improvement,” including “intense efforts to improve alignment across Juniper.” The company also hired a new vice president of human resources early last year.

Juniper’s chief financial officer and the leader of its enterprise business resigned in March, giving rise to concerns among some analysts about the level of management turnover at the company.

Juniper’s total headcount grew 5% in the most recent quarter to 5,099. During the same period, Juniper’s chief rival, Cisco Systems, added 2,227 employees, ending the quarter with a workforce of nearly 57,000. That disparity has at least one analyst favoring reassignment over reductions in Juniper’s workforce. “Shuffling makes sense,” the analyst said. “Cutting doesn’t.”