Creative Technology To Close Plant
SINGAPORE (AP) _ Creative Technology Ltd., a maker of digital entertainment products, is laying off 10 percent of its staff worldwide, or about 400 workers, to ``aggressively cut costs.″
The Singapore-based, Nasdaq-listed company will also close a plant in Malvern, Penn., and cut back on select Internet initiatives, Wynne Leong, a spokeswoman with Creative, told The Associated Press Tuesday.
In a statement, the company blamed the ``steep downturn in global equity markets″ and the ``severity of the economic climate″ for the layoffs.
The company currently employs 5,500 people around the world.
Creative Technology said in a statement that it is targeting cuts between $260 million and $270 million in third quarter revenue and pretax profit margins of 27 percent to 28 percent. It said it will spend between $15 million and $20 million on restructuring.
In the third quarter last year, Creative Technology earned $88.3 million and had sales of $330 million.
The company will consolidate manufacturing operations in its Singapore facilities, the statement said.
Shares of Creative Technology were down 13 cents to $9.63 in trading on the Nasdaq Monday.
Creative Technology is known for digital entertainment products like the Sound Blaster and Nomad Jukebox, a portable music player with its own hard drive, allowing it to carry music equivalent to 150 compact discs in a neat package weighing less than a pound.