Gene Logic Inc. (MM) (NASDAQ:GLGC)
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From Feb 2020 to Feb 2025
Gene Logic Inc. (NASDAQ:GLGC) announced today that it
has initiated a plan to reduce the number of employees in its Genomics
Division and related Corporate staff by eliminating approximately 80
positions, effective October 5, 2006. The action is being taken as
part of an ongoing strategic review of the Genomics business. Retained
employees will support existing products and services and ensure
ongoing service levels are effectively maintained for current and
prospective customers.
Gene Logic is providing advance notice to affected employees,
consistent with the federal Worker Adjustment and Retraining
Notification (WARN) Act, which will allow for a reasonable transition
of the business and allow affected employees to begin to seek other
employment. Affected employees will be given severance and
outplacement assistance costing approximately $1.5 million.
Staff in the Company's Preclinical and Drug Repositioning
Divisions will not be affected by this reduction.
Once fully implemented, the Company estimates that these staff
reductions will reduce its annual salary and fringe benefits costs by
approximately $8.0 million. The Company expects additional savings in
certain non-employee costs to be realized in connection with this
restructuring.
The Company has scheduled its second quarter earnings call for
Friday, August 4, and plans to communicate the results of its
strategic review by the end of September.
Gene Logic Overview
Gene Logic technologies and services are used by many of the
world's top pharmaceutical and biotechnology companies. Over 150
organizations and government agencies have benefited from Gene Logic's
diverse portfolio of drug development services, enabling them to make
more informed, more reliable and more predictive decisions at each
point in the highly complex and costly drug development process.
Founded in 1994, Gene Logic is headquartered in Gaithersburg,
Maryland, conducts additional research and development in facilities
in Cambridge, Massachusetts, and has customer support operations in
the U.S., Europe, and Asia.
Safe Harbor Statement
This news release contains forward-looking statements that involve
significant risks and uncertainties that are discussed in our Annual
Report on Form 10-K for the year ended December 31, 2005 (filed on
March 16, 2006) and in subsequent filings made with the Securities and
Exchange Commission and to the risks and uncertainties arising from
the Company's ongoing strategic review of business. Gene Logic is
providing this information as of the date of this news release and
does not undertake any obligation to update any forward-looking
statements contained in this document as a result of new information,
future events or otherwise. No forward-looking statement can be
guaranteed and actual results may differ materially from those we
project.