Scientific-Atlanta, a vendor of digital interactive set-tops and subscriber systems, is to reduce its workforce by approximately 400 positions, or about 6% of the company’s total, citing difficult trading conditions in the cable industry.
Most of the reductions are effective immediately, although some will occur over the next several months. The positions being eliminated are from every sector and function world-wide.
All affected employees will receive a severance package and outplacement services such as job networking, resume assistance, access to job opportunity sites, and coaching.
Scientific-Atlanta expects these actions to reduce its costs and expenses by approximately $40 million on an annual basis, starting in the second half of fiscal year 2003.
The company expects to take a one-time, pre-tax charge of approximately $15 million, or $0.06 per share, in the first half of the fiscal year, with the larger component in the first fiscal quarter.