Align in restructuring plan
Orthodontics technology company Align Technology (Santa Clara, California) reported a restructuring plan to increase efficiencies across the organization and lower the company's overall cost structure. The restructuring plan includes a total reduction of 111 full-time headcount in Santa Clara, of which 46 positions will be eliminated between now and January.
The remaining positions will be eliminated over the next few quarters as the company creates a new shared services organization in its existing Costa Rica operation that will consolidate customer care, accounts receivable, credit and collections, and customer event registration organizations.
"The majority of what we are doing is structural and many valued employees are affected. These actions, while difficult, are essential to Align becoming a more efficient company and will result in a more robust operating model with room to invest for future growth," said President/CEO Thomas Prescott.
As part of these actions, Align will record a restructuring charge estimated to be nearly $5 million, of which about $3.5 million will be realized in 4Q08 and the remainder over the first half of 2009.