IKON Office Solutions (IKN) to Cut LDS Locations in US to 47 and Close European Location; Will Reduce Headcount by 265 in US and 50 in Europe

September 11, 2008 9:20 AM EDT

In a Form 8-K, IKON Office Solutions (NYSE: IKN) has announced that its plans to reduce the number of LDS locations in the U.S. to 47 and to close the LDS location in Europe. As a result of these actions, LDS headcount will be reduced by approximately 265 in the U.S. and by approximately 50 in Europe.

The total pre-tax charges associated with these actions include severance expenses, asset impairments, and contract costs estimated to be approximately $7 million, a significant portion of which is expected to be reported in Q408. The estimated after-tax cash expenditures total approximately $4 million and consist primarily of severance payments and lease termination costs. IKON expects to complete the actions described above in Q408.

IKON Office Solutions, Inc., through its subsidiaries, operates as an independent channel for document management systems and services enabling customers worldwide to enhance document workflow.

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