Emulex Cuts 10% Workforce Amid Restructuring To Improve Efficiency - Quick Facts

(RTTNews) - Emulex Corp. (ELX) announced that it has implemented a restructuring plan designed to streamline business operations with the goal of driving long-term shareholder value, including a workforce reduction of 110 people or about 10 percent.

The restructuring will also include the consolidation of some engineering activities, and the closure of the company's Bolton, Massachusetts engineering facility.

The restructuring plan is part of the three-part transformation initiative announced last month to improve profitability, increase cash flow and enhance shareholder value.

These actions are part of an overall plan to reduce costs in the company's core business while allowing continued investment in market expansion initiatives and will result in a more streamlined and focused organization.

The company expects to have the restructuring completed and the transition of the Bolton, Massachusetts facility finished by the end of fiscal year 2014 at which time the site will close.

Emulex estimates that it will incur pre-tax charges in the range of $9 to $10 million in connection with these restructuring actions, the majority of which will be recorded during the second quarter of fiscal year 2014. The company also reaffirmed its previously announced adjusted financial guidance for the second quarter of fiscal year 2014.