Cost Reduction Program $6 Million in Quarterly Savings, Lower Capex Spending
Actions Announced in July 2001
- Facility consolidations (scheduled closure of two smaller locations--Santa Clara and Shenzhen, China); closures now completed
- Work force reductions (41% or 870 people from approximately 2,100 to 1,230 people)
- $6M reduction in quarterly expense structure by 4Q01 from 2Q01 spending rate; $3.6M of projected savings realized in 3Q01
- Limit capital expenditures to $15M during 2H01; capital expenditures totaled $9M in 3Q01