Spansion to cut 20 percent workforce, take related charge
(Reuters) - Flash memory provider Spansion Inc said it would cut about a fifth of its workforce and expects to take a related charge of about $30-$56 million, sending its shares down 2.5 percent after the bell.
The company said it would cut 750 jobs, 610 of which will come from closing down its Kuala Lumpur, Malaysia, facility by the end of the first quarter of fiscal 2012.
About $24 million of the charges will be cash costs, recorded from the fourth quarter of fiscal 2011 through the third quarter of fiscal 2012, Spansion said in a statement.
In September, Spansion, which emerged from bankruptcy last year, slashed its third-quarter revenue outlook, citing softness in the wireless and consumer markets.
Shares of the company fell to $9.75 in extended trading. They closed at $10 on Wednesday on Nasdaq.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Sriraj Kalluvila)
- South Korea's Park says conduct of ferry crew tantamount to murder |
- Putin playing the long game over Russian kin in Ukraine
- Japan PM makes offering to Yasukuni Shrine, angers China, South Korea
- Ukraine peace deal falters as rebels show no sign of surrender |
- Cyclone threatens to disrupt search for missing Malaysian plane |