Lawson Software (LWSN) to Cut 4% of Workforce; Sees Annual Cost Savings of $18-$20M
More News related to LWSN
- Lawson Software to Host Analyst Day at NASDAQ MarketSite November 4
- Carroll Hospital Center Live on Lawson Enterprise Software Solution
- Lawson Software Stockholders Approve All Proposals at 2009 Annual Meeting of Stockholders
- Lawson Software Announces Conference Call Information for Stockholders Meeting
- Deutsche Bank Lifts Price Targets On Application Sftware Companies (ADBE, ORCL, CRM, more...)
In a Form 8-K, Lawson Software (Nasdaq: LWSN) disclosed that it has approved a plan to restructure its workforce. The Company is beginning a realignment of its organizational structure to provide greater focus on its targeted vertical markets. The restructuring involves the reduction of certain resources outside the Company’s targeted markets while further investing in resources that will support these markets, elimination of certain positions due to operational efficiencies, and lowering costs overall in light of the current weakness in global business conditions.
Under this plan, the Company will reduce its workforce by approximately 150 employees, or 4 percent of the global workforce and consolidate space in certain of its leased facilities related to its international operations. The Company began providing notices to employees affected by the realignment on May 18, 2009 and personnel departures are expected to be completed by the end of the Company’s third quarter of fiscal 2010. The strategic workforce realignment actions are expected to result in pre-tax charges of approximately $6 million for severance pay and related benefits. The consolidation of leased facilities is expected to result in pre-tax charges of approximately $4 million. The majority of these charges totaling approximately $10 million will be recorded in the fourth quarter of fiscal 2009. Substantially all of these amounts will result in future cash expenditures. The Company expects the majority of the severance and related benefits will be paid within the next 12 months while the leased facilities costs will be paid through December 2011.
Annualized cost and expense savings from these actions are estimated to be in the range of $18-$20 million. However, the Company will reinvest a portion of these saving to fund newly created positions to support a new vertical organization structure which the Company intends to implement. Hiring for the new positions is expected to occur over the course of fiscal 2010.
Related Categories
Corporate NewsStocks Mentioned
+0.06Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
