Greeley, CO--August 27, 1996--Jack Calderon, who became president and CEO of Electronic Fab Technology Corp. (Greeley, CO) on Aug. 5, 1996, announced that the company has undergone a restructuring that includes a reduction in workforce, an increased emphasis in sales and marketing, and a realignment of corporate operations.
Calderon stated that the restructuring was driven by repositioning the company to address a more focused high-mix market niche, and by the slowing of anticipated orders for the fourth quarter of 1996.
The company recently completed a reduction of its overall workforce by 142 positions, which resulted in a 23.2 percent decrease in employees and approximately a 30 percent reduction in annualized payroll costs. The overall cost savings to the company from the workforce reduction is estimated at approximately $4 million on an annualized basis. The company intends to increase its national presence through a strategic sales and marketing effort costing approximately $500,000.
As part of the corporate restructuring, the company will incur 1996 third quarter charges of approximately $2.1 million. Included in the restructuring charges are severance expenses and other labor costs related to workforce reduction, write-down of impaired assets and write-down of inventory related to anticipated changes in the company's customer mix.
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