InFocus will lay off 30 percent of its staff
by Mike Rogoway, The Oregonian
Monday December 15, 2008, 4:31 PM
InFocus Corp. said this afternoon that it will lay off 30 percent of its employees over the next year, beginning in January.
"We've made quite difficult, but necessary, decisions resulting from a number of factors affecting our business," chief executive Bob O'Malley said in a written statement. He said the Wilsonville company saw demand for its digital projectors begin to fall in September, adding that the recession is prompting InFocus to re-evaluate its strategy for 2009.
InFocus didn't say precisely how many people will lose their jobs, but the company had about 350 employees last spring, including roughly 150 at its Wilsonville headquarters. If cuts are applied evenly across the company, about 100 people would be laid off altogether -- including about 45 in Wilsonville.
The company said it expects restructuring charges up to $6.1 million in the fourth quarter of this year to cover the cost of restructuring and job cuts.
InFocus helped pioneer the market for digital projectors, now ubiquitous in meeting rooms from schools to corporations. But InFocus has steadily lost market share to big brand names from Asia, which brought bigger marketing muscle and lower prices.
"Our 2009 business model will be based on a targeted and simplified product line combined with prudent management of cash outlays and expense levels," O'Malley said. "In 2009, we will focus on streamlined sales and marketing programs in our core markets in the education, business and high-end home entertainment markets."
Additionally, InFocus said it will take charges of up to $4.5 million to vacate leased space at its Wilsonville headquarters.
Last week, InFocus announced it has hired an investment bank to help it evaluate unnamed bidders' interest in buying the company.
InFocus' share price rose 9 cents today, closing at 76 cents before the company announced its layoffs.
-- Mike Rogoway; mikerogoway@news.oregonian.com
Monday December 15, 2008, 4:31 PM
InFocus Corp. said this afternoon that it will lay off 30 percent of its employees over the next year, beginning in January.
"We've made quite difficult, but necessary, decisions resulting from a number of factors affecting our business," chief executive Bob O'Malley said in a written statement. He said the Wilsonville company saw demand for its digital projectors begin to fall in September, adding that the recession is prompting InFocus to re-evaluate its strategy for 2009.
InFocus didn't say precisely how many people will lose their jobs, but the company had about 350 employees last spring, including roughly 150 at its Wilsonville headquarters. If cuts are applied evenly across the company, about 100 people would be laid off altogether -- including about 45 in Wilsonville.
The company said it expects restructuring charges up to $6.1 million in the fourth quarter of this year to cover the cost of restructuring and job cuts.
InFocus helped pioneer the market for digital projectors, now ubiquitous in meeting rooms from schools to corporations. But InFocus has steadily lost market share to big brand names from Asia, which brought bigger marketing muscle and lower prices.
"Our 2009 business model will be based on a targeted and simplified product line combined with prudent management of cash outlays and expense levels," O'Malley said. "In 2009, we will focus on streamlined sales and marketing programs in our core markets in the education, business and high-end home entertainment markets."
Additionally, InFocus said it will take charges of up to $4.5 million to vacate leased space at its Wilsonville headquarters.
Last week, InFocus announced it has hired an investment bank to help it evaluate unnamed bidders' interest in buying the company.
InFocus' share price rose 9 cents today, closing at 76 cents before the company announced its layoffs.
-- Mike Rogoway; mikerogoway@news.oregonian.com
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