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Melville, N.Y. — Arrow Electronics Inc. is continuing to take action 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.
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.
Arrow Electronics is one of the world's largest distributors of electronic components and computer products and a leading provider of services to the electronics industry. For more information, visit www.arrow.com.