Seeking Profitability
The company expects the workforce reduction and additional cost-reduction actions to achieve an estimated $80mn in savings in 2003 and an estimated $125mn in annualised cost savings by the end of 2003. The base of both comparisons is given with the companys annualised costs for Q3 2002.
Over the next year, the company plans to consolidate into fewer locations and further streamline operations. The company will achieve the workforce reductions through attrition as well as voluntary and involuntary severance programs. The focus will be on reducing costs of manufacturing and various general and administrative operations .
Certain functions will be transferred to sites in Central Europe and Asia with the goal of supporting the companys continued growth in the Chinese market.
