Polycom To Eliminate About 11% Of Global Workforce

(RTTNews) - Polycom Inc. (PLCM) disclosed in a regulatory filing that it will eliminate approximately 11% of its global workforce. Notifications to affected employees are substantially complete, and the effective date of these eliminations will occur over the next few quarters.

It expects to record charges and make cash expenditures, primarily related to severance and other one-time employee termination benefits, of between $19 million and $22 million through the fourth quarter of 2016 as a result of the action.

The company said it has also approved plans to reduce or eliminate certain leased facilities. As a result, it expects to record approximately $3 million in additional charges upon vacating these facilities through the third quarter of 2016, inclusive of the planned closure of its office in Israel as a result of shifting work to lower cost geographies. The underlying net cash expenditures of approximately $3 million are expected to occur over the remaining lease terms of 2 years or less.

The total charges expected to be incurred in connection with these actions through the fourth quarter of 2016 are between $22 million and $25 million.

As a result of additional charges, the company now expects its fourth quarter 2015 GAAP earnings per share to range from $0.07 to $0.09 per share. These actions do not change its fourth quarter 2015 non-GAAP financial guidance provided on October 21, 2015.

Analysts polled by Thomson Reuters expect the company to report earnings of $0.23 per share for the fourth-quarter. Analysts' estimates typically exclude special items.