Home / Knowledge / News / Information Technology / Lawson Software announces cost reduction measures
Lawson Software announces cost reduction measures
19
Nov '08
Lawson Software announced it is implementing cost reduction measures in light of current economic conditions. The company will restructure its workforce, close one office facility and reduce discretionary expenses while preserving targeted investments that enable long-term growth and increased efficiencies.

The restructuring plan includes the elimination of approximately 200 employees, or 5 percent of the global workforce, with personnel departures expected to be substantially completed by Dec. 31, 2008.

When combined with anticipated voluntary attrition and limited hiring, the total reduction in the global workforce is estimated to be between 8 percent and 10 percent by the end of the company's fiscal year on May 31, 2009. Annualized cost savings from the restructuring, attrition, limited hiring and other expense controls combined are estimated to be in the range of $40 million to $50 million.

The restructuring actions are expected to result in pre-tax charges of approximately $9 million to $12 million for severance pay and related benefits and expenses for the facility closure. The majority of the charges will be recorded in the second fiscal quarter which ends Nov. 30, 2008. The Company anticipates recording the remaining charges in the third and fourth quarters of its fiscal year ending May 31, 2009.

"Making decisions to reduce personnel are difficult because of the impact to good people and their families, but these actions are necessary in this challenging economic environment," said Harry Debes, Lawson president and chief executive officer. "Lawson is a financially strong company with a robust balance sheet and a healthy net cash position. While we are reducing our overall costs, we will continue to maintain high levels of customer support and product innovation. We will also continue to make targeted investments in our IT systems and infrastructure and other selected initiatives that keep our long-term goals intact."

Lawson Software


Must ReadView All

India's Kay Ventures aims to turn Karur into knitwear hub

Apparel/Garments | On 20th Aug 2018

India's Kay Ventures aims to turn Karur into knitwear hub

India’s Kay Ventures has teamed up with Hydra Micro Business...

Uzbekistan-China meeting discusses textile cooperation

Textiles | On 20th Aug 2018

Uzbekistan-China meeting discusses textile cooperation

A meeting of the Uzbek-Chinese business forum on cooperation in the...

Moldova wooing Indian investors in textiles, agriculture

Textiles | On 20th Aug 2018

Moldova wooing Indian investors in textiles, agriculture

Moldova is wooing Indian investors in textiles, agriculture and a few ...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search