Brooks Automation Enters Restructuring Plan, to Reduce Headcount by 6%
On December 12, 2012, Brooks Automation, Inc. (NASDAQ: BRKS) committed to a restructuring plan to (i) achieve cost synergies associated with its recent acquisition of Crossing Automation Inc. and (ii) further reduce its costs and improve profitability in light of the continued near-term macro-economic environment. The plan primarily includes the elimination of redundant positions across the Company, as well as the consolidation of office locations in California, Germany, Korea, Singapore, Taiwan and China. Through both of these actions, the Company expects to reduce its workforce by approximately 100 employees, which includes 10 contingent employees, representing approximately 6% of the Company's workforce. The Company currently expects to substantially complete the restructuring plan prior to the end of the third quarter of fiscal 2013.
Brooks expects to incur approximately $4.0 million in cash charges related to the restructuring plan, most of which will be recognized in the first and second quarters of fiscal year 2013. Of the $4.0 million in cash charges, approximately 90% are the result of severance and other workforce reduction costs, while the remainder relate to costs associated with the office consolidations. The office consolidations are expected to be complete by the end of the third quarter of fiscal year 2013. The Company estimates that these combined actions will avoid future annualized costs of approximately $10.0 million, not including any restructuring charges. The Company expects to achieve additional expense savings from acquisition synergies primarily related to the elimination of certain duplicative costs that Crossing Automation will no longer incur as part of Brooks.
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