Sierra Wireless, Inc. announced today that it is implementing cutbacks that are expected to reduce labour costs by ...
January 29, 2009
Sierra Wireless, Inc. announced today that it is implementing cutbacks that are expected to reduce labour costs by approximately $5.5 million on an annualized run rate basis.
The firm’s ‘expense reduction’ program includes the elimination of approximately 56 positions, representing 10% of the company’s workforce.
The company expects to incur a pre-tax charge of approximately $1.3 million in the first quarter for severance and other costs related to this program.
“We have experienced strong revenue growth over the past three years and have significantly expanded our team size,” said Jason Cohenour, Sierra’s president and CEO.
“We also believe that our product portfolio and channel position in key markets remains strong. However, based on the expectation that economic uncertainty will continue for the foreseeable future, we felt it was prudent to reduce our cost structure now, in order to mitigate the potential impact of this uncertainty.”