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In order to continue delivering value to customers in the future, Symantec will increase its investment in research and development and homegrown innovation to better meet next generation needs. Symantec will also establish strategic partnerships where it can integrate what it does with others to add even more value for customers. This will help customers stay ahead of increasingly challenging information and protection challenges at the endpoint, network and data center levels.

"There is a huge set of underserved and unmet needs that customers are experiencing with regards to protecting, moving and managing their information on multiple devices," continued Bennett. "With our resources and know-how, we are in a better position to meet those needs than anyone. We have the infrastructure to deliver real value to help customers and this new strategy will improve both our focus and execution. We also have the expertise to know and see what they're going to need next. It's a question of alignment and regaining focus on the current and future needs of customers via a renewed emphasis on innovation plus developing new technology."

Operations and Organization

Symantec's sales process will continue to rely heavily on the channel to manage current customers and free up Symantec's sales force to focus on generating new business. Symantec will also enhance the marketing organization with more strategic resources and capability to accelerate focus and organic growth.

Symantec has created a new Office of the CEO. A small team of executives (chief financial officer, president of products and services, and chief operating officer) has been established to make collective operational and functional decisions with Bennett on a daily basis. Also reporting directly into the CEO are direct reports based on function (such as HR, Finance, Legal, etc.) and the sales geography leaders. A group of extended staff -- including the chief officers of functions such as IT, marketing, communications, and technology -- will be another group reporting into the CEO.

In order to make the company more flexible and able to adapt quicker to the needs of customers, more emphasis will be placed on giving front-line employees greater empowerment, input and discretion in addressing customers' needs on a day to day basis. As such, there will be fewer executives and middle management positions, resulting in a reduction of the workforce. This process is expected to be completed by the end of June 2013.

"Symantec is a strong company with leadership products, brands and great employees," said Bennett. "Past leaders and employees of this company have left an outstanding legacy of assets for us to build upon as we move forward. The next step is to change things that allow us to adapt quicker to the marketplace, and in the end, continue Symantec's tradition and high standards for delivering tremendous value to our employees, customers, partners and shareholders."

Financial Implications

As we execute on our strategy and operational plan we are committed to deliver more than 5% organic revenue growth and non-GAAP operating margins better than 30% over the next two to three years.

The coming year will include significant transitions as we begin to improve our growth capabilities, establish a dedicated renewals team, refocus our direct field sales representatives on new business and eliminate duplicative organization and operating structures. As such, we expect organic revenue growth between 0% and 2% in FY14. However, we have identified many opportunities to drive efficiencies and redeploy resources which will remove duplication and complexity. As a result, we expect non-GAAP operating margins to increase by approximately 200 basis points in FY14. Our initial estimate for severance payments of approximately $275 million will impact cash flows in FY14.