Cadence Announces Restructuring Plans.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Nov. 4, 1998--Cadence Design Systems, Inc. today announced that it will take a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the fourth quarter of 1998. The restructuring plan, which is expected to reduce the company's cost structure by approximately $8 million in Q4 1998 and by approximately $60 million in fiscal 1999, is intended to enhance the company's competitive position through improvements in operational productivity and expenditure reduction. The company estimates that approximately $36 million will be required in Q4 1998 to cover expenses related to staff reductions, and facilities and program streamlining. The restructuring will include a global workforce reduction of about 12% -- approximately 560 employees. "The demand for our products and services is very strong. However, we have been dissatisfied with cost effectiveness, particularly in the services business. This action improves our services margins and represents an opportunity to streamline across the company," said Jack Harding, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cadence. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. Risks about the Company's business are detailed from time to time in the Company's SEC reports, including the reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended January 3, 1998 and Form 10-Q Form 10-Q See 10-Q. for the quarter ended July 4, 1998. About Cadence Cadence Design Systems (company) Cadence Design Systems - A company that sells electronic design automation software and services. http://cadence.com/. See also Verilog. , Inc. provides comprehensive services and software for the product development requirements of the world's leading electronics companies. Cadence is the largest supplier of software products, consulting services, and design services used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications equipment, consumer electronics, and a variety of other electronic-based products. With more than 4,000 employees and 1997 annual sales of $916 million, Cadence has sales offices, design centers, and research facilities around the world. The company is headquartered in San Jose, Calif. and traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. . More information about the company, its products and services may be obtained from the World Wide Web at http://www.cadence.com. -0- Note to Editors: Cadence is a registered trademark, and the Cadence logo is a trademark of Cadence Design Systems, Inc. All others are properties of their holders. |
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