Organizational Realignment into Global Business Units - To better align the Company with its key commercial and consumer channels, Imation will realign its organizational structure into two business units: Tiered Storage and Security Solutions (TSS), which will focus on small and medium business, enterprise and government customers; and Consumer Storage and Accessories (CSA), which will focus on retail channels.
Said Lucas, “Imation is undergoing a transformation to build a long-term platform for growth and increased margins. We are realigning our organization into two business units to provide a more focused customer-centric structure that leads to faster decision-making, clearer accountability, a more nimble organization and increased efficiency worldwide. We are fortunate to have two highly skilled and experienced leaders to head up the business units.”
Leading the new TSS business unit will be Ian Williams, currently Imation vice president, global marketing and product management. Williams, who joined the Company in early 2011, has a deep data storage background. Greg Bosler, currently Imation senior vice president, global business management, will lead the CSA business. Bosler brings extensive experience in retail sales, marketing and general management; he has been with Imation since 2009.
Cost Reduction Program - In conjunction with the realignment of the business structure, the Company is also taking actions to right-size its operations with the goal of reducing operating expenses by approximately 25 percent. The program will address process improvements globally, product line rationalization and infrastructure, and include a reduction of approximately 20 percent of Imation’s global workforce. The staff reductions are expected to occur in 2013. Impacted employees will be provided financial support and outplacement assistance.The company anticipates it will incur cash charges up to $40 million, with total charges expected to be $50 million to $60 million.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts