is cutting 28% of its workforce to achieve an expected $7 million to $12 million in annual cost savings, the company said Thursday.
The medical-software company will terminate 150 jobs, most of which will be effective immediately, but others will be transitioned out over the course of six months. As a result of the gradual phase-out, the company says it doesn't expect a full expense reduction in 2007.
The company expects costs of about $1 million to $2 million related to retention and bonuses for remaining employees, and another $3 million to $5 million in expenses primarily related to severance.
As a part of an overall restructuring plan, Merge will close its San Francisco and Tokyo offices and downsize other offices in the U.S. and Canada, but will increase the size of its headquarters office in Milwaukee. The company's development and support services will be expanded to India.
Shares were up 14 cents to $6.69.