Summary
Agilent Technologies, Inc. announced on December 17, 2008, a significant restructuring program initiated on December 12, 2008, in response to deteriorating economic conditions. This program includes a reduction of approximately 500 regular global employees and over 300 temporary positions, aimed at enhancing the operating model potential of impacted business units. The company expects these workforce reductions, alongside a temporary worldwide pay reduction and/or unpaid time-off program for employees effective January 1, 2009, to result in substantial annual operating expense savings.
Key Highlights
- 1Agilent Technologies is implementing a targeted restructuring program due to deteriorating economic conditions.
- 2The program involves a workforce reduction of approximately 500 regular employees and over 300 temporary positions.
- 3A temporary worldwide pay reduction and/or unpaid time-off program for employees will commence January 1, 2009.
- 4The restructuring program and temporary workforce reductions are expected to yield annual operating expense savings of approximately $65 million.
- 5The pay reduction programs are anticipated to contribute an additional $100 million in annual cost savings.
- 6Agilent expects to record pre-tax restructuring charges of approximately $55 million, primarily for employee severance, with most resulting in future cash expenditures.
- 7The majority of restructuring activities are planned for completion by May 31, 2009, with the remainder by October 31, 2009.
Frequently Asked Questions
Agilent is implementing a restructuring program in response to deteriorating economic conditions and to enhance the operating model potential of certain business units that have been most severely impacted by the current economic downturn.
The company anticipates a reduction in annual operating expenses of approximately $65 million from the restructuring program and temporary workforce reductions. Additionally, the pay reduction programs are expected to generate an additional $100 million in annual cost savings. Agilent also expects to incur approximately $55 million in pre-tax restructuring charges, largely for employee severance.
Agilent expects to complete a majority of the activities related to the restructuring program by May 31, 2009, with the remainder anticipated to be completed by October 31, 2009.
The restructuring program includes a reduction of approximately 500 regular global employees and over 300 temporary positions. It is also accompanied by a temporary worldwide pay reduction and/or unpaid time-off program for employees, effective January 1, 2009.