UPDATE 1-Plantronics to cut 17 pct of workforce
* Says to close plant in Suzhou, China
* Says will cut 670 jobs
* Sees restructuring, other charges of $11 mln-$13 mln March 26 (Reuters) - Headset maker Plantronics Inc (PLT.N) said it will cut 670 jobs, or 17 percent of its workforce, as it outsources production of bluetooth headsets to an existing supplier in China.
"Not only will this action improve profitability in the critical bluetooth headset market, it will increase our return on capital significantly by decreasing our fixed asset base and increasing inventory turns," Chief Executive Ken Kannappan said in a statement.
The job cuts will primarily be in China, with some in the United States, Greg Klaben, vice president of investor relations, said by phone.
The Santa Cruz, California-based company had 3,887 employees as of September.
Plantronics will also cut costs related to research and development, and expects incremental restructuring and other related charges of about $11 million to $13 million.
"The plan will proceed in phases and is expected to be complete by October 2009," the company said.
Shares of the company closed up 6 percent at $10.72 Thursday on the New York Stock Exchange.
For the alerts, double-click. [ID:nWNAB7890] (Reporting by Shradhha Sharma in Bangalore; Editing by Ratul Ray Chaudhuri)
