Polycom to cut global workforce by 11%Staff writer ▼ | December 3, 2015
Polycom is taking actions designed to further optimize its organization. These actions will result in the elimination of approximately 11% of its global workforce.
Reduction Polycom approved plans to reduce or eliminate certain leased facilities
The company expects to record charges and make cash expenditures, primarily related to severance and other one-time employee termination benefits, of between $19 million and $22 million through the fourth quarter of 2016 as a result of this action.
The company also approved plans to reduce or eliminate certain leased facilities. As a result, it expects to record approximately $3 million in additional charges upon vacating these facilities through the third quarter of 2016, inclusive of the planned closure of its office in Israel as a result of shifting work to lower cost geographies.
The underlying net cash expenditures of approximately $3 million are expected to occur over the remaining lease terms of 2 years or less.
The total charges expected to be incurred in connection with these actions through the fourth quarter of 2016 are between $22 million and $25 million.
As a result of these additional charges, the company now expects its fourth quarter 2015 GAAP earnings per share to range from $0.07 to $0.09 per share. These actions do not change its fourth quarter 2015 non-GAAP financial guidance ■