Harvard Bioscience Realigns Global Operations - Cuts Workforce
Harvard Bioscience, a developer, manufacturer, and marketer of tools for life science research, has announced the realignment of its global operations to create organizational efficiencies and better position the company for growth.
As part of the realignment, Harvard Bioscience will reduce its global workforce by approximately 13 percent by eliminating certain operational redundancies across several sites, creating a leaner, more nimble organization. It plans to reinvest some of the savings into its China expansion, sales and marketing and product development initiatives, in order to drive growth.
Harvard Bioscience expects to realize overall annual savings of approximately $2 million on a pre-tax basis, beginning in 2014. These savings include an immediate reduction of approximately $3 million in personnel related costs and expenditures, of which approximately $1 million will be reinvested.
Management expects to take a restructuring charge of approximately $1.5 million on a pre-tax basis during the fourth quarter 2013 as a result of these actions.
Jeffrey A. Duchemin, President and CEO of Harvard Bioscience, said, "Since taking over as CEO in August, I have had the opportunity to conduct a thorough review of the Company's operations, meet with many of our customers, visit several of our global sites, and evaluate potential adjustments to the personnel, organizational structure and platform necessary to position us for growth. It is with this goal in mind that we have implemented these organizational changes."
He added, "These changes allow us to become a more functional organization. We will also be focusing on increasing growth, expanding in Asia and other emerging markets, building stronger channel capabilities and reinvigorating product development. We are implementing several initiatives aimed at driving efficiencies and improving our operational and cost structure. These measures announced today are designed to help us eliminate redundancies and realign our business. This reorganization will allow us to realize cost savings and build on our already solid foundations to create a world-class company."