PMC-Sierra, Inc. today announced that it is undertaking a corporate restructuring that it expects will reduce ongoi...
March 29, 2007
PMC-Sierra, Inc. today announced that it is undertaking a corporate restructuring that it expects will reduce ongoing annualized operating expenses by upwards of US$24 million annually.
It said in a statement the cost cutting is part of its ongoing effort to improve corporate operating performance and boost productivity across the organization.
The program will include the closure of two of PMC-Sierra’s R&D centers in Winnipeg and Saskatoon.
The total work force reduction under the plan is expected to be approximately 175 positions. PMC-Sierra currently has 1,183 employees worldwide.
The restructuring will begin immediately and is expected to be complete by the end of the third quarter.
The company estimates the total costs and charges associated with it will be approximately US$12-$14 million.
They include severance costs related to the workforce reduction as well as costs associated with the planned closure of facilities and other related asset write-offs.
These initiatives will better align our efforts on our strategic customer engagements in the Fiber To The Home, enterprise storage, and other communications infrastructure product areas, said Bob Bailey, chairman and CEO of PMC-Sierra.