Tuesday, Lionbridge Technologies Inc. (LIOX), a provider of translation, development and testing services, announced that it would reduce about 325 personnel, or 8% of its total full time workforce, as part of a restructuring plan to consolidate and streamline several of its global operations.
The company stated that these actions complement its previous cost management activities and would further optimize its operating model, rationalize its operations and improve profitability.
The company estimates that the restructuring plan would result in $18 million - $20 million of total annualized cost savings and expect to achieve $6 million - $9 million of the cost savings in 2009.
To implement the plan, Lionbridge anticipates restructuring expenses of $13 million - $15 million, the majority of which is expected to occur in 2009.
Rory Cowan, chief executive officer, Lionbridge, said, "Our technology investments over the past four years are enabling us to increase quality and maximize efficiency. As a result, we are accelerating our customer service and quality and reducing our global expenses."
The company noted that this streamlining enables to adapt it to the current demand levels and preserves its ability to invest in strategic initiatives such as cloud-based language platform and global sourcing and search capabilities.
Moving ahead, Lionbridge pointed that, after a challenging start to the year it is beginning to see traditional second quarter strengthening in select geographies.
LIOX is currently trading at $1.27, up 2.42%.
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