Aug. 13--PEABODY -- Analogic Corp., an international medical device and security technology company headquartered in Peabody, plans to save $6 million next year by merging engineering departments and laying off 50 employees.
The plan was disclosed in an Aug. 5 filing with the U.S. Securities and Exchange Commission. The report merely says that Analogic has committed to a restructuring plan involving the reduction of 50 employees and a realignment of parts of the company to "better leverage certain core competencies across its business."
Company spokesman Mark Namaroff said cuts would be made "across the board" among Analogic's engineering divisions to consolidate and achieve greater efficiency. He said some of the layoffs will occur outside the United States.
The restructuring is mainly focused on computed tomography, or CT, and security engineering groups, he said. There are 1,700 employees at Analogic's seven global locations and about 400 engineering employees across the company.
Analogic did report this spring that it was anticipating a slight decline in revenue, but Namaroff said the restructuring has more to do with an ongoing plan that spans several years to "improve operational efficiency and effectiveness" across the company.
Last year, Analogic reported laying off 115 employees, as well as consolidating manufacturing and support activities at a Canadian facility, closing an office in France and one in Colorado, and optimizing operations elsewhere, including in Peabody.
The company expects to incur a $3 million pre-tax restructuring charge for severance packages and related expenses in the fourth quarter, which ended July 31, but Namaroff said Analogic should quickly see some financial benefits from the changes.
In addition to the Peabody headquarters, Analogic has domestic operations in Canton and a facility in Pennsylvania. There are also facilities in Canada, Denmark and China.
You can reach John Castelluccio at 978-338-2527, email@example.com or via Twitter at @SNjcastelluccio.
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