Mentor Says 110 Employees To Exit Under Voluntary Retirement Program

(RTTNews) - Mentor Graphics Corp (MENT) on Wednesday said about 110 North American employees would exit the company by opting for a voluntary early retirement program.

Mentor said the early retirement program previously announced and other selective workforce actions initiated in the first quarter of fiscal 2016 is to improve alignment of its workforce with targeted business initiatives.

Mentor said about 4 percent of its global workforce is expected to be impacted by the early retirement program and other restructuring actions in the first half of fiscal 2016.

These actions, the company said, are anticipated to result in a restructuring charge reported as a GAAP expense of about $37 million, most of which would be recorded in the first quarter.

Mentor said the restructuring costs are not anticipated to have a material effect on the its revenue and non-GAAP earnings-per-share guidance for the first quarter or fiscal 2016.

"These restructuring activities will enable Mentor to focus personnel and resources on priority opportunities and regions of the world, deliver long-term growth and build shareholder value," said CEO Walden Rhines.

Rhines said the company has high-growth opportunities including embedded software, the transportation market and the continued growth of the Pacific Rim.

Mentor Graphics, based in Wilsonville, Oregon, provides electronic design automation software and hardware solutions.