GTC BiotherapeuticS (GTCB) Reduces Headcount by 50 to Save on Costs; Expects $2.6M in Severance
On June 15, 2010, GTC Biotherapeutics, Inc. (OTC: GTCB) implemented a restructuring of their operations that resulted in a downsizing of approximately 30 full-time positions at their headquarters and an additional 20 positions at their farm facility. They undertook this workforce reduction as part of an initiative to narrow their strategic and operational focus and significantly decrease their on-going financial resource requirements.
They estimate that the total restructuring expenses to be incurred in connection with the workforce reduction, including cash expenditures associated with severance pay, will be approximately $2.6 million, of which approximately 40% is expected to be paid in 2011. They anticipate that this restructuring charge will result in a cost savings of approximately $8 to 9 million per year. T he estimate of cost savings and cash expenditures that they expect to incur and the estimated restructuring expense are subject to a number of assumptions, and actual results may differ.
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