TORONTO – Leitch Technology announced today that it will cut between 75 to 100 staffers in Toronto as part of its overall cost-cutting plan.
The company, a leading provider of SD/HD solutions for the professional digital video industry, “today announced that as part of its supply chain cost reduction plans and to increase its manufacturing flexibility it will be outsourcing some of its Toronto-based activities. As a result, approximately 75 to 100 staff will be affected and receive severance packages over the next several months,” reads the press release.
Charges associated with this decision are expected to be approximately $3 million, and will be recorded in the company’s first quarter ending July 31, 2005.
However, Leitch also announced that it is continuing to expand its customer support services, and will be adding approximately 15 staff to the service team. Some of these new positions will be in the Company’s Toronto-based 24×7 worldwide customer support center.
“Making the right decisions about which processes we can do ourselves and which can be better done outside the Company is a critical part of our drive to become a cost leader," said Tim Thorsteinson, president and CEO, in a statement. "We believe difficult actions like these are necessary to provide our customers with the level of price/performance and customer support they want as they transition from their analog base to digital and HD."
The company is scheduled to report its fourth quarter and year ending April 30, 2005 results on June 7, 2005.
