Polycom to slash workforce by about 11%
Polycom Inc.'s stock slumped 1.6% in premarket trade Thursday, after the video-conferencing equipment maker said it will cut about 11% of its workforce as it looks to optimize profitability. Based on the 3,525 employees the company had as of Dec. 31, 2014, according to the latest regulatory disclosures, the cuts would equate to about 388 jobs. The company said in a regulatory filing that it expects to record charges of $19 million to $22 million, primarily for severance costs and employee termination benefits, through the fourth quarter of 2016. An additional charge of about $3 million is expected for vacating certain leased facilities. The stock has tacked on 0.4% year to date through Wednesday, while the S&P 500 has gained 1%.
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