Lance Inc. (Nasdaq: LNCE) today announced it is undertaking a series of cost reductions, including a reorganization which will result in a reduction in its workforce of about 2 percent. These actions are being taken to restore profit margins and align the Company's operating costs with its revenue, which has been below the Company's expectations. The reduction in the Company's workforce was completed this week, with no further cutbacks planned. Lance is providing impacted employees with severance packages and job placement services.
"Our reduction in costs is necessary considering the impact that the current business climate has had on our revenue."said David V. Singer, president and CEO. "The reduction in our workforce is by far the most difficult part of our cost reduction action. Lance is a company that is driven by people and innovation, but with the current economic environment and resulting impact to our top line, adjustments are required to align operating expenses with sale volumes. These actions will not impede our work on positioning ourselves for growth, great service and innovation to continue to drive our top line growth going forward."
The Company expects to record a pre-tax charge of for severance and related expenses of approximately $3 million in the second quarter of fiscal 2010 in connection these actions. Annualized benefits from these cost reductions are expected to total approximately $6 million. Management is not changing full year financial estimates as a result of these actions.
Lance, Inc. Announces Cost Cuts, Workforce reductions
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