NEW YORK (TheStreet) -- Software maker Symantec (SYMC), long criticized for poor execution in its strategy, rolled out ambitious new plans this week, with CEO Steve Bennett vowing to breathe new life into the company.
"It's an organic growth-focused strategy," he told TheStreet in a phone interview. "Before, we had an acquisition-[focused] strategy."
Symantec's shares have climbed 66% since Bennett stepped into the company's hotseat. The former Intuit (INTU) CEO, who also spent 23 years at GE (GE) earlier in his career, has now rolled out his Symantec masterplan.Bennett wants to streamline the company's operations, while delivering improved performance for customers and partners. As part of this effort, Symantec will focus on 10 core areas, which include information-security services, security gateways, data-center security and storage. The CEO wants to offer customers a broader menu of products, while also letting them migrate to new integrated offerings, particularly in areas such as mobile and cloud. "We're going to continue to make our point solutions better," he added. As part of this effort, Symantec will increase its research investment. R&D as a percentage of revenue was 14% during fiscal 2012, which is expected to rise to 16% in fiscal 2017. Sales and marketing expenses as a percentage of revenue are expected to decline from 41% to 27% over the same period. Bennett also wants to improve the security and storage specialist's command structure. "Over time, we have built a very bloated and inefficient management structure," he said. "We have too many managers." To make the company more flexible and better equipped to meet customers' needs, Symantec will give front-line employees greater power. As a result, the company is cutting executive and middle-management positions, with the layoffs scheduled to be completed by the end of June. Symantec has not said how many of the company's 20,225 employees will be affected, although Bloomberg reports that 1,000 jobs could be cut.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV