Arrow Cuts 400
MELVILLE, N.Y. -- Arrow Electronics, Inc.
(NYSE:ARW) today announced that it is continuing to take actions to increase its operational and organizational efficiencies. These actions, across multiple locations and functions, will eliminate approximately 400 jobs (approximately 3 percent of the company's global work force) and will include a further rationalization of the company's physical logistics network. The company will realize approximately $25 million of annual operating expense savings, with the majority of the expense reduction being realized at the beginning of the third quarter of 2003. The company will record restructuring charges of between $12 million and $15 million in connection with these actions and expects that about half of the charges will be included in its second quarter results.
"It is unfortunate that our decisions require the elimination of employee positions, but we must continue to identify opportunities to operate more efficiently and, at the same time, enhance our ability to meet the needs of our customers and suppliers," said William E. Mitchell, President and Chief Executive Officer of Arrow. "This is an evolutionary process that is critical to the success of Arrow and those who depend on us."
Included in the actions being taken by the company will be the merger of the Global Information Business ("GIB") into Arrow's existing worldwide components businesses and the reduction of certain GIB offerings. "The information and services developed by GIB have proven to be of benefit to both our customers and to Arrow," said Mr. Mitchell, "but today the market served by GIB is not large enough to economically support this business as a separate entity."
Arrow Electronics Inc.