Wednesday, 4 Kids Entertainment Inc. (KDE), a children's entertainment and merchandise licensing organization, said it axed about 15% of workforce across its subsidiaries and divisions and that it intends to cut down the operating expenses by an additional $4 million - $5 million in 2009.
With the staff cuts, 4 Kids said it would incur a severance charge of approximately $375 thousands in the fourth quarter. However, in 2009, the company expects to save $15 million - $18 million with reductions in staff and cuts in operating expenses, along with the early termination of its agreement with Fox Broadcasting Company.
Commenting on the steps, Chief Executive Officer, Alfred Kahn said, "The streamlining of our organization and further reduction in operating expenses will better position the Company to ride out the current economic storm".
The stock closed Tuesday, at $2.02 on the New York Stock Exchange.
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