Workforce DECIMATION: QLogic fires up its pink slip printer
Slightly more than one in ten bods could be for the chop in upcoming layoffs
Available here, the brief SEC filing states:
On 2 September, 2015, QLogic Corporation (the “Company”) approved a restructuring plan designed to better align the Company’s future operating expenses with its current revenue expectations.
The restructuring plan consists of workforce reductions which the Company anticipates will be substantially completed during the [its] fiscal 2016.
In connection with the restructuring plan, the Company expects to incur between $5m and $6m of pre-tax cash charges associated with the restructuring plan, consisting of employee termination benefits.
The Company expects that the charges associated with the restructuring plan will be recorded in the Company’s fiscal 2016.
QLogic has about 925 employees. If we assume each terminated head costs $100,000, then 50-60 people will be going. If the cost is $50,000 per head, then between 100 and 120 people will be departing.
Former CEO Prasad Ramapalli received a $1.26m payoff, plus other benefits relating to COBRA premiums and stock options. ®
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