Keithley Instruments, Inc. (NYSE:KEI), a world leader in advanced electrical test instruments and systems, today announced additional cost reductions designed to improve the Company's financial performance. The Company has reduced its global workforce by approximately ten percent, which includes the impact of a voluntary separation program.
The estimated non-recurring severance, separation and related costs associated with the reductions are expected to approximate $2.3 to $2.6 million on a pre-tax basis. The actual costs will be determined when the actions are completed in September, and it is expected that the majority of the charges will be recorded in the fourth quarter of fiscal 2009. The Company is currently estimating that the annual costs savings associated with this reduction in force and other expected discretionary cost reductions will approximate ten percent of the Company's estimated fiscal 2009 operating costs.
"As we have previously stated, we plan to return to profitability in fiscal 2010, and we believe that the actions we have taken today will help us achieve that goal," stated Joseph P. Keithley, the Company's Chairman, President and Chief Executive Officer. "We know these actions will have a significant impact on our employees; however, we have made these decisions to improve our financial results in light of our customers' current spending levels."