Raph's Girl
12-17-2008, 08:57 PM
http://news.awn.com/index.php?ltype=top&newsitem_no=25787
4Kids Ent. will cut its workforce by 15 percent across all subsidiaries and divisions in an attempt to better align its organization and overall cost structure in the current challenging economic environment.
As a result of the staff cuts, 4Kids will be incurring severance costs of approximately $375,000 in the fourth quarter of 2008. The company has also completed a comprehensive review of its operations and will be taking steps intended to reduce operating expenses by an additional $4 to $5 million in 2009.
These staff reductions and projected cuts in operating expenses, together with the early termination of the 4Kids/Fox Broadcasting Company Agreement effective December 31, 2008, which was announced in November, are expected to result in pretax savings of $15 to $18 million in 2009.
"We have taken some critical steps to respond to the litany of challenges presented by the worldwide economic crisis," said Alfred R. Kahn, Chairman and CEO of 4Kids Ent. "The streamlining of our organization and further reduction in operating expenses will better position the company to ride out the current economic storm."
4Kids Ent. will cut its workforce by 15 percent across all subsidiaries and divisions in an attempt to better align its organization and overall cost structure in the current challenging economic environment.
As a result of the staff cuts, 4Kids will be incurring severance costs of approximately $375,000 in the fourth quarter of 2008. The company has also completed a comprehensive review of its operations and will be taking steps intended to reduce operating expenses by an additional $4 to $5 million in 2009.
These staff reductions and projected cuts in operating expenses, together with the early termination of the 4Kids/Fox Broadcasting Company Agreement effective December 31, 2008, which was announced in November, are expected to result in pretax savings of $15 to $18 million in 2009.
"We have taken some critical steps to respond to the litany of challenges presented by the worldwide economic crisis," said Alfred R. Kahn, Chairman and CEO of 4Kids Ent. "The streamlining of our organization and further reduction in operating expenses will better position the company to ride out the current economic storm."