Thursday, manufacturer of machine vision sensors and systems Cognex Corp. (CGNX), revealed cost-cutting measures planned to be undertaken by the company, that includes closing of its facility in Georgia, and reducing headcount by approximately 60 positions, primarily in the United States. The company cited a bleak economic outlook, and gloomy market conditions for the cost-cutting actions.
Natick, Massachusetts-based Cognex noted that it has decided to shut down its Georgia facility by mid-2009, and lay off 60 full time positions, of which 7% represent worldwide positions, while the rest are in the United States.
The cost-cutting measures are expected to result in savings of approximately $6 million on an annual basis, fully realizable beginning in 2010.
Cognex expects the cost saving actions to result in a pre-tax charge of approximately $700 thousand in the fourth quarter of 2008, and an additional charge of approximately $1.7 million in the first half of 2009, related to closure of Georgia facility.
The company also noted that it has now been decided to consolidate the distribution center that is currently based in Georgia into its headquarters in Natick, Massachusetts.
Robert Shillman, chairman and chief executive officer of Cognex said, "The actions announced today were not made easily; the individuals who were let go were all hardworking, experienced and dedicated employees; but unfortunately the actions were necessary to ensure the continued profitability of our company."
CGNX ended Thursday's regular trading at $15.15, up 7.91% or $1.11, on a volume of 396,571 shares on the Nasdaq.
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