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Company expects to save approximately $4.1 million annually.
FARO Published: 08/25/2009
(FARO: Lake Mary, FL) -- FARO Technologies Inc. today announced a global reduction in force. This reduction is in addition to previously announced reductions of approximately 21 percent that occurred during the first quarter of 2009.
The reduction, effective immediately, affects approximately 8 percent of FARO's current workforce. The company expects to save approximately $4.1 million on an annual basis and will incur a third quarter charge of approximately $0.6 million related to severance costs. In total, the actions taken this year should provide an annualized benefit of approximately $17 million.
"This reduction, combined with the reductions we announced in the first quarter, will lower the cost structure of the business substantially in 2010 while also providing cost benefits in the current year," says Jay Freeland, FARO's president and CEO. "Though the long-term opportunity for FARO remains strong, there is clearly some weakness in the current market. While we regret the impact of this decision on our employees, we believe the reduction in force is prudent and should help us return to profitability as soon as 2010"
The company will provide further details when it reports third quarter financial results, currently scheduled for the beginning of November.
FARO develops and markets computer-aided coordinate measurement and imaging devices and software. FARO’s portable equipment permits high-precision 3-D measurement, imaging, and comparison of parts and compound structures within production and quality assurance processes. The devices are used for inspecting components and assemblies, production planning, 3-D documentation, as well as for investigation and reconstruction of accident sites or crime scenes, and to generate digital scans of historic sites. Principal products include the FaroArm, the FARO Laser Tracker ION, FARO Laser ScanArm, FARO Laser Scanner, FARO Gage, and the CAM2 family of advanced CAD-based measurement and reporting software.
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