17.04.01
IMAX Lays Off Workers |
Toronto, February 20, 2001) - IMAX Corporation (Nasdaq: IMAX; TSE: IMX) today announced a workforce reduction as part of a broader corporate restructuring plan to better align the organization with its strategic objectives. The Company believes that the resulting SG&A reductions and redistribution of resources will better position it to achieve positive returns. The Company will consolidate its manufacturing of sound and projection systems at its Sheridan Park facility in Mississauga, Ontario and has scaled back the operations at its Birmingham, Alabama facility.
This workforce reduction will result in an elimination of approximately 130 jobs out of a current workforce of approximately 1000 employees. "These measures were necessary to improve IMAX's operating results and in response to the financial difficulties in the commercial exhibition industry," said IMAX co-CEOs Richard L. Gelfond and Bradley J. Wechsler. "While it's disheartening to lay off valued members of the IMAX team, we believe that these measures will ultimately improve shareholder value and we remain optimistic about IMAX's future."
The Company will host a conference call in mid-March 2001 to discuss the corporate restructuring and earnings for the fourth quarter and year ended December 31, 2000. The Company will recognize a charge in the first quarter of 2001 as a result of this workforce reduction.
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