Cambridge Internet company Akamai Technologies is laying off about 3 percent of its workforce, or almost 300 people.
Akamai said on Tuesday that it took a restructuring charge of $45 million in the first quarter, mostly to cover the costs of severance for the laid-off employees. A smaller portion of the charge covered the costs of reducing the company’s office footprint.
“This was a difficult decision, but it was necessary for us to prioritize investments in the areas with the greatest potential for future growth as we strive to deliver greater value for shareholders,” chief executive Tom Leighton said on a call with analysts.
The cuts come as Akamai’s original business of helping media and gaming companies distribute content on the Internet more efficiently continues to shrink amid fierce competition. The Internet delivery business brought in $394 million in the first quarter, 11 percent less than in the same period a year ago. Leighton has been pivoting the company to focus on cybersecurity and cloud computing services, which helped Akamai’s overall first-quarter revenue increase 1 percent to $916 million, slightly better than analysts expected.
Shares of Akamai, which had lost 6 percent so far this year, jumped 5 percent in after-hours trading on Tuesday.
Akamai’s first-quarter net income decreased by 27 percent to $97 million, or 62 cents per share. The company said it expects revenue of up to $3.8 billion in 2023 and earnings per share of as much as $5.84.
Akamai joins many other local tech companies that have cut workers in the past few months, including cybersecurity firm Snyk and liquor delivery service Drizly.