NEW YORK (GenomeWeb News) – Affymetrix's decision to shutter its Bedford, Mass., plant will cost it between $15 million and $19 million, the company said in a filing with Securities and Exchange Commission yesterday.
As GenomeWeb News reported earlier this month, the company decided to shut its instrument manufacturing and development facility as part of a restructuring plan to cut costs. The facility will be consolidated with two existing plants in California.
Employee severance and relocation benefits are expected to cost between $8 million and $10 million. Vacating the facility, which was under lease, will cost between $5 million and $7 million.
Approximately $2 million will be spent on other costs, including fixed-asset write downs and equipment and inventory relocation costs.
These restructuring expenses will be reflected in the third cal quarter of 2006 and continue through the third quarter 2007.
Cash outlays incurred in connection with these restructuring activities are estimated to be in the range of $14 million to $18 million.
Affymetrix expects to complete the closure by third quarter of 2007.
As part of the shutdown, approximately 80 positions will be eliminated or transfered beginning in the fourth quarter this year and continuing into the first half of 2007, yesterday's filing reiterated.