Small appliance maker Salton, Inc. announced that it is completing the first phase of its recently announced cost-reduction program. As part of the program, the company is letting go more than 200 employees from its domestic operations, reducing annualized expenses by U.S. $11 million.
As a result of the personnel reduction, the appliance company expects to take a charge of approximately $0.6 million for severance costs in its fourth fiscal quarter ending June 28, 2004.
"While it is disappointing that we had to take these actions, Salton is firmly committed to returning its domestic operations to profitability," Leonhard Dreimann, CEO, said in a statement. "We believe these actions, as part of our overall restructuring activities, will better align our domestic cost structure with the current revenue base.
"We continue to aggressively target other areas for additional cost savings and are confident that we will quickly reach our previously announced objective of a minimum of $40 million in cost reductions," Mr. Dreimann continued. "While these lay offs are emotionally difficult for the Salton management team, we have already made plans to ensure that there is as little disruption as possible, and expect that it will have little impact on our overall sales activity."
After the lay offs, Lake Forest, IL-based Salton will employ 530 people in its domestic operations.
to Daily News