Storage software vendor Legato Systems Inc. (Nasdaq: LGTO) has slashed between 5 and 6 percent of its workforce in an attempt to reduce operating costs, the company said Wednesday (see Legato to Lay Off 5-6% of Staff).
Wall Street cheered the move: The company saw its shares jump nearly 10 percent in morning trading Thursday, to $6.66 per share.
Legato says it expects to take a $3 million to $4 million charge during the current quarter in connection with the cuts, which will bring Legatos headcount to between 1,480 and 1,500. That's down from 1,563 employees at the end of its first quarter last month.
The pink slips started going out yesterday, according to Sandy OHalloran, Legato's VP of investor relations. "The layoffs are across the board and worldwide, and affect all layers of the organization from the top to the bottom," she says.
Since the headcount changes include both "realignments" -- in which people are reassigned to new positions in the company -- and the old-fashioned boot, OHalloran says the company is unable to give a specific number for how many employees have been affected.
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