AMIS closes sites to save money
AMIS Holdings, Inc has announced a restructuring plan to reduce costs through a consolidation of design centres and a workforce reduction. The restructuring plan includes a workforce reduction of approximately 80 - 85 employees world-wide, representing approximately 3 percent of its total workforce. As part of this reduction, the Company will be closing design centres in Eilat, Israel; Panningen, The Netherlands; Carlsbad, California; and India.
The Company anticipates these actions along with other business changes will result in annual cost savings of approximately $10 million when fully implemented by the end of the first quarter 2007. A restructuring charge, expected to range between $6.0 million and $7.0 million, is anticipated to be recorded in the first quarter of 2007. This charge will reflect expenses associated with the workforce reduction and lease termination and other costs associated with closed facilities. Substantially all of the restructuring charges are expected to be cash charges.
"The difficult actions announced here are necessary to increase our R&D effectiveness and our operating leverage. These actions will help to focus our R&D efforts while building a more competitive cost structure and streamlined organization." stated Christine King, chief executive officer, AMIS Holding, Inc.
