Geospace Technologies to cut 20% of workforce

Geospace Technologies (GEOS [https://seekingalpha.com/symbol/GEOS]) announced on Monday that executive management has implemented an organizational change plan that will result in a 20% reduction in its global workforce, included a voluntary early retirement plan available to eligible qualifying employees.

The company said management is evaluating opportunities to operate more efficiently by optimizing its cost structure.

In connection with the workforce reduction, the company expects to incur $0.6M in termination costs in the second quarter and $0.7M in costs in the third quarter.

According to the company’s SEC filing [https://seekingalpha.com/filing/244979110], the workforce reduction, along with cost-containment measures, is expected to produce about $10M in annual cash savings.

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