Emulex To Cut 10% Of Workforce - Update

(RTTNews) - Networking products provider Emulex Corp. (ELX), said Wednesday it will reduce its workforce by ten percent as part of efforts to streamline operations and enhance shareholder value. The company will also consolidate some engineering activities and close its Bolton, Massachusetts engineering facility.

The actions are part of plans Emulex revealed last month, including slashing annual costs by $30 million, mainly in its core operations.

The job cuts will affect 110 people.

"This announcement reinforces our focus toward streamlining our operations with a sense of urgency to deliver increased profitability," said CEO Jeff Benck.

Emulex expects to have the restructuring completed and the transition of the Bolton, Massachusetts facility completed by the end of fiscal year 2014.

The company expects to incur pre-tax charges of $9 million to $10 million as a result, most of which will be recorded in the second quarter of fiscal year 2014.

Emulex' announcement comes amid some criticism by activist investor Starboard Value LP over the company's weak financial results.

Earlier, Emulex, based in Costa Mesa, California, named three independent directors to its board and said it will buy back up to about 30 percent of its stock.

Emulex provides network connectivity, monitoring, and management products.

Emulex stock is trading at $7.24, down $0.13 or 1.76%, on a volume of 442 thousand shares on the NYSE.