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COFES Blog
Nov
6
Written by:
Russ Henke
11/6/2008 7:22 AM
On November 5, 2008 Cadence announced the commencement of a restructuring program designed to “focus the company's strategy, streamline the business and improve operational execution and financial performance.” Once completed, the company expects to achieve annual operating expense savings of at least $150 million through a combination of workforce and other expense reductions.
The company expects to eliminate at least 625 full-time positions, representing 12% of its global employee base, plus a substantial number of contractors and consultants. Because of varying regulations in the jurisdictions and countries in which Cadence operates, workforce reductions will be realized over a period of time and are expected to be completed in the second half of fiscal 2009. Cadence expects to record a restructuring charge of approximately $65 million to $70 million pre-tax, $48 million of which will be recorded in the third quarter of 2008.
As this blog entry is posted, Cadence shares are trading at $4.33 each, yielding a market cap of $1.13 billion.
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