Intersil Announces Plans to Restructure, Cutting 150 Jobs, Sees Charge $8-12M
Intersil Corporation (NASDAQ: ISIL), today announced a resource rebalancing initiative designed to better align the company's operating expenses with strategic growth areas to improve competitiveness and execution across the business. The actions will shift more resources to product development, reducing expenses in manufacturing and sales operations as well as administrative functions. The initiative is specifically designed to create long-term structural changes that will enable incremental investments in product development, while remaining approximately within the current overall operating expense run rate. The company also announced today higher than expected revenue of $144.8 million for the second quarter ended July 5, 2013. The rebalancing initiative includes a reduction of the workforce by approximately 150 employees, which is anticipated to be gradually offset by the addition of new hires in design and development over the next few quarters. The resulting restructuring charges are expected to be in the range of $8 to $12 million. Management intends to discuss this initiative and the company's strategic direction during the upcoming second quarter earnings webcast.
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