Opta Food Ingredients today announced a restructuring program that is designed to reduce the company's overall cost structure by approximately $1 million annually.
As part of this restructuring, the company has reduced headcount by more than 6 percent, chiefly at its corporate headquarters, and will decrease support for certain new ingredient development efforts.
In addition, the company has decided to suspend its activities related to identifying acquisition opportunities for the foreseeable future.
A charge for non-recurring costs related to the restructuring, which the company estimates will be approximately $400,000, or $.04 on a per share basis, will be reported as part of its 2001 fourth quarter results.
Arthur J. McEvily, president and chief executive officer, said the restructuring reflects a shift in strategy to focus on maximizing returns from Opta's existing product portfolio and less emphasis on new product development. "There are considerable opportunities for all of our commercial products and we are aligning our resources to leverage the success of these ingredients in the marketplace. We believe this restructuring will improve operating efficiencies and reduce the overall cost structure, which we anticipate will accelerate the company's ability to return to profitability," he said.