QLogic Corp. (QLGC) is implementing a restructuring plan that involves cutting its workforce, consolidating engineering activities and enhancing its focus on product development to drive long-term profitable growth.
The supplier of switches, controllers and other networking products expects the restructuring will be substantially complete within the next year. Once fully implemented, the company expects the restructuring actions will save about $20 million in cash annually, primarily in operating expenses.
The company has plans to reinvest part of these savings in the development of new products and programs.
QLogic didn't detail how many staff members it plans to layoff. The company has about 1,230 employees according to FactSet.
The company estimates that it will incur pretax charges between $20 million and $23 million in connection with these restructuring actions, the majority of which will be recorded during the first half of fiscal year 2014.
Shares of QLogic, which backed its adjusted first-quarter guidance, rose by three cents to $9.84 in recent premarket trading. The stock has dropped 28% in the past 12 months.