The company is cutting workers primarily in its media division as it aims to improve margins.
The media division, Akamai’s unit that speeds up Web pages (including Video streaming), saw fourth quarter revenue fall 3 percent.
Based on the conditions of the markets, i.e. the dissolution of Net Neutrality, companies like Akamai are primed to present attractive solutions to a bandwidth constrained market. Akamai historically has been a market leader in this space, along with Amazon’s CloudFront solution. So, I take pause by these actions, although on the surface Akamai has market dominance in this growth area, are there other potential impeding factors:
- Akamai’s business operating plan needs to be retooled to compete with ever-increasing competitors into space once dominated.
- Projected (i.e. inside information) regarding FCC regulations that will put Akamai at a market disadvantage. Lobbyists!