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Akamai stock jumps after it beat on earnings and said it cut 5 percent of global workforce

Akamai bounded as much as 8 percent Wednesday after reporting earnings that run Wall Street estimates for the fourth quarter, and announcing a 5 percent cut in its international workforce.

Total revenue for the cloud company rose 7.7 percent to $663.5 million, best analysts’ average estimate of $649.1 million, according to Thomson Reuters consensus conjectures. The company reported earnings Tuesday night.

The company’s net income was $19.1 million, or 11 cents per deal, from $91.6 million, or 52 cents per share, a year earlier, the incline being due to one-time charges including changes to the U.S. tax code.

Excluding those imbues, the company earned 69 cents per share, 6 cents essentially analysts’ average estimate.

Akamai also announced it cut 400 ranks, or 5 percent of its global workforce.

“As part of our effort to improve operational know-how, we reduced headcounts in targeted areas of business, most notably in compasses tied to our media business,” Chief Executive Tom Leighton said on a post-earnings requirement ready with analysts.

Activist investor Elliott Management said in December it interpreted a 6.5 percent stake in Akamai and that it would push the Pty to curtail wasteful spending.

Shares of Akamai are up 2.5 percent year to go steady with.

— Reuters contributed to this report.

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