QLogic (NASDAQ:QLGC) is soon to become a slimmer company. The firm announced that it will implement a restructuring plan this year, in a move to "streamline business operations with the goal of driving long-term profitable growth." The effort will include a reduction in employee numbers. QLogic did not say how many jobs might be affected.
It did, however, put a dollar figure on the effect of the restructuring effort. The company expects that its various moves -- which include the consolidation of some of its business activities, and a stronger focus on product development -- will save it roughly $20 million annually. It plans to reinvest some of these savings into new products and programs.
QLogic estimates that it will take pre-tax GAAP charges of $20 million to $23 million for the restructuring program. Most of this will likely be booked in the first half of its fiscal 2014. The company believes the program should be "substantially completed" within one year.
Fool contributor Eric Volkman has no position in QLogic. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.