Akamai to cut 110 jobs worldwide

Akamai Technologies Inc., a Cambridge company whose vast network of web servers delivers Internet content for e-commerce sites and other businessess around the world, said it will cut its global workforce by 7 percent, or about 110 employees.

The company didn't break out the number of job cuts by location and declined to say how many would be shed at its headquarters, where it employs about 650 workers in two Kendall Square buildings. Overall, it employed more than 1,500 worldwide at the end of September.

Akamai's cuts are part of a restructuring the company said it would take in the fourth quarter to reduce its operating costs at a time when the US and global economies have been turning down.

The company said it expects to take an accounting charge of $4 million to cover the cost of severance and related expenses in the October-to-December period. That charge will be partly offset by a $800,000 reduction in stock-based compensation, reflecting a modification to the incentives of certain employees, it said.

Spokesman Jeff W. Young said Akamai will continue to selectively hire some new employees for critical jobs in Cambridge and elsewhere even as it scales back in other areas. "Our goal is to continue investing for growth despite the current economic climate," he said.

Akamai, which is often viewed as a barometer for the Internet economy, has enjoyed rapid growth in recent years. Its third-quarter profit climbed 37 percent to $33.4 million, or 18 cents a share, on a 22 percent increase in revenue to $197.3 million. In June, chief executive Paul Sagancq said in an interview that Akamai had added nearly 100 jobs in Cambridge in 2008 and expected to add 100 to 200 more.
(By Robert Weisman, Globe staff)