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Quotes & Info
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| LWSN > SEC Filings for LWSN > Form 8-K on 18-Nov-2008 | All Recent SEC Filings |
18-Nov-2008
Costs Associated with Exit or Disposal Activities, Financial Statements and
On November 18, 2008, Lawson Software, Inc. (the "Company") announced it is implementing cost reduction measures in light of current economic conditions. The Company will reduce its workforce, close one facility and reduce discretionary expenses while preserving targeted investments that enable long-term growth and increased efficiencies. The restructuring plan includes the elimination of approximately 200 employees, or 5 percent of the global workforce, with personnel departures expected to be substantially completed by December 31, 2008. When combined with anticipated voluntary attrition unrelated to the restructuring and limited hiring, the total reduction in the global workforce is estimated to be between 8 percent and 10 percent by the end of the Company's fiscal year on May 31, 2009. Annualized cost savings from the restructuring, attrition, limited hiring and other expense controls combined are estimated to be in the range of $40 million to $50 million.
The restructuring actions are expected to result in pre-tax charges of approximately $9 million to $12 million for severance pay and related benefits and expenses for the facility closure. The majority of the charges will be recorded in the second fiscal quarter which ends November 30, 2008. The Company anticipates recording the remaining charges in the third and fourth quarters of its fiscal year ending May 31, 2009.
Management may conclude that additional future actions may be required if global economic conditions deteriorate, but the timing and extent of such actions or related charges are not currently determinable.
A copy of the Company's press release announcing this information and certain other information is attached as Exhibit 99.1 to this filing of form 8-K and incorporated herein by reference.
(d) Exhibits
99.1 Press Release of Lawson Software, Inc. issued November 18, 2008
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