Analogic Corporation (Analogic) has reduced its workforce by 6% worldwide and has vacated a portion of its Canton, Massachusetts facility. The reduction in force, which affects 85 people across the business, will result in a $2.1 million charge for severance and related costs. In addition, the company vacated approximately half of its Copley Controls facility in Canton, moving certain operations to its Peabody facility.
Accordingly, the company will record a charge of $1.0 million, which represents the ongoing lease payments for the vacated portion over the remainder of the lease term, which ends in 2011.
As a result 6% reduction in its workforce, the company will record a $3.1 million charge in the fourth fiscal quarter of 2009. The company expects this action will result in annual expense savings of approximately $5 million, a portion of which will fund strategic growth initiatives.
“We recognize that workforce reductions are difficult for everyone”, commented Jim Green, president and chief executive officer. “However, we have a commitment to improve our overall operational effectiveness and fund the ongoing investments needed to position Analogic for future growth. While market conditions over the past few quarters have been difficult, we remain optimistic as the market appears to be stabilizing.”
Analogic is a designer and manufacturer of medical and security imaging systems and subsystems, primarily for Original Equipment Manufacturers (OEMs).