Plantronics to layoff 18 percent of global work force

SANTA CRUZ - Plantronics will lay off 18 percent of its worldwide work force, cut management salaries and reduce other operating expenses, company officials announced today.

Company officials did not release details about the timing or location of the layoffs.

Company officials said revenue and earnings per share for the third quarter of fiscal 2009 will be lower than originally expected. They had projected net revenues of $205 million to $220 million but now are expecting revenues to be $184 million for the third quarter. Final third-quarter earnings will be announced Jan. 27.

The revised revenue estimate is mostly the result of lower-than-expected sales of Bluetooth headsets, but also reflects the impact of broad economic weakness across different product categories, officials said.

As a result of the workforce reduction and other restructuring, officials expect savings of approximately $7.7 million to $8.2 million in the fourth quarter of fiscal 2009. Yearly savings are expected to be more than $50 million. The company also plans a 50 percent reduction in capital expenditures in fiscal 2010.

"As global economic weakness persists, our key objectives are to remain profitable and cash-flow positive, continue to invest in strategic initiatives such as unified communications, and to improve our profitability in our consumer businesses," said President and Chief Executive Officer Ken Kannappan. "We believe that our strong financial position combined with ongoing strategic investments will allow us to emerge from this downturn in a significantly stronger competitive position."

Plantronics is a publicly held company headquartered in Santa Cruz. It has offices in 20 countries including Mexico, China and England.