QLogic Plans Layoffs

QLogic Corp. is implementing a restructuring plan designed to streamline business operations with the goal of driving long-term profitable growth.

The restructuring plan includes a workforce reduction, the consolidation of several engineering activities, and enhanced product development focus. These restructuring activities are part of an overall plan to deliver greater value to customers and shareholders, while accelerating innovation.

QLogic anticipates the restructuring actions will be substantially completed within the next twelve months. Once fully implemented, the company expects the restructuring actions will achieve annualized cash savings of approximately $20 million, primarily in operating expenses. QLogic has plans to reinvest part of these savings in the development of new products and programs.

"These restructuring activities represent decisive steps designed to maximize engineering efficiencies, optimize business operations and align our investments with customer requirements," said Jean Hu, interim CEO and CFO, QLogic.

The company estimates that it will incur pre-tax GAAP charges between $20 million and $23 million in connection with these restructuring actions, the majority of which will be recorded during the first half of fiscal year 2014.

The company reaffirms its previously announced non-GAAP financial guidance for the first quarter of fiscal year 2014.

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