Brooks Automation (BRKS) Continues Workforce Reduction

September 17, 2012 4:46 PM EDT
Brooks Automation, Inc. (Nasdaq: BRKS) committed to a reduction in force in order to reduce its operating costs and improve profitability in light of the expected near-term macro-economic environment.

In addition, the Company previously committed to a downsizing, refocusing and relocation of the Company’s life sciences operation in Oberdiessbach, Switzerland. Through both of these actions, the Company expects to reduce its workforce by approximately 150 employees, 66 of which are contingent employees and 19 of which are part of the Swiss Restructuring.

The total reduction represents approximately 10 percent of the Company’s workforce. Brooks currently expects to substantially complete the reduction in force prior to the end of the fourth quarter of fiscal 2012.

Brooks expects to incur approximately $2.4 to $2.8 million in cash charges related to the reduction in force and the Swiss Restructuring, most of which will be recognized in the fourth quarter of fiscal 2012. Greater than 90 percent of these expected charges are the result of severance and other workforce reduction costs, while the remainder relate to the Swiss Restructuring. The Company estimates that these combined actions will result in a reduction in annual operating expenses of approximately $11 million, not including any restructuring charges.

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