UPDATE 1-UTStarcom to reduce workforce by 10 pct
Dec 18 (Reuters) - Telecoms equipment maker UTStarcom Inc (UTSI.O) said it would reduce its global headcount by 10 percent, wind down its Korea-based handset manufacturing operation and take related charges as it strives to improve its financial performance.
The company, which plans to reduce about 460 jobs, said it sees a fourth-quarter charge of $8 million comprised of one-time severance benefits.
The company also said it will wind down its Korea-based handset manufacturing operation by July 2009 and expects to take a related charge of about $10 million in the fourth quarter.
Additionally, UTStarcom said it would also disband its custom solutions business unit by the end of the first quarter.
The company, which expects the series of corporate initiatives to reduce annualized costs by more than $100 million, said the majority of the measures would be initiated by the end of January and a significant portion of the savings would be recognized in the first half of 2009.
Shares of the Alameda, California-based company closed down 6 cents at $1.62 Thursday on Nasdaq. They have shed 70 percent over the past six months. (Reporting by Sandhya Menon in Bangalore; Editing by Deepak Kannan)
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