Plantronics laying off 18 percent, writing down goodwil

plantronics-logoPlantronics, the Santa Cruz maker of headsets said last week that it plans to cut 18 percent of its workforce, or about 900 jobs, “effective immediately”, the same day that it warned that its sales for its fiscal 2009 third quarter would be about $184 million, lower than the guidance range it had previously given of $205-$220 million.

The company blamed the shortfall on lower than expected sales of Bluetooth headsets, but also reported “broad economic weakness across different product categories and geographies.”

As of the end of its last fiscal year ended March 31, 2008, the company said it had 5,000 employees worldwide, “including about 2,800, and 900 employees at our manufacturing facilities in Tijuana, Mexico and Suzhou, China, respectively.”

Plantronics is also in the midst of evaluating the level of impairment of its goodwill and intangible assets by approximately $60-$80 million. The company reported a goodwill asset of $59.1 million related to the value of its Altec Lansing product line trade name as of Sept. 30, 2008, as well as a $10.7 million value for its customer relations.


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