Belden to cut jobs, take charges
NEW YORK (Reuters) - Cable manufacturer Belden Inc (BDC.N) said on Wednesday it will cut about 1,800 employees, or 20 percent of its workforce and consolidate some manufacturing operations due to weaker demand for its products.
"We expect that economic conditions will remain challenging for some time," John Stroup, president and chief executive officer, said in a statement. "Therefore it is necessary for us to further adjust our cost structure so that we can continue to be competitive under such conditions."
Belden expects to incur one-time charges of between $55 million to $65 million pretax, or 85 cents to $1.00 per share, related to the restructuring. It expects $35 million to $40 million of the charges will be incurred in its current quarter, with the balance following in future periods.
Belden expects the changes will provide annualized cost savings of about $50 million.
In October, Belden, which makes signal transmission products such as cables and connectors, reported a drop in third-quarter profit and cut its 2008 outlook.
(Reporting by Nicole Maestri; Editing by Andre Grenon)
