Salton announces layoffs, shares rebound (200 jobs)

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=5279142

CHICAGO, May 27 (Reuters) - Salton Inc. (SFP.N: Quote, Profile, Research) on Thursday said it laid off more than one-quarter of its 730 U.S. workers in the initial phase of its cost-cutting plan to satisfy lenders.

Before the layoff announcement, shares in the Lake Forest, Illinois-based seller of kitchen appliances and indoor grills surged nearly 40 percent, closing at $5.64, up $1.59, on the New York Stock Exchange.

The shares reached an earlier high of $6.15, a rebound from its May 14 low of $2.50 but still depressed from its late-January high of $15.20.

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In its belated announcement, the company said the layoffs of 200 of its 730 domestic workers would save $11 million annually and require a $600,000 charge against fiscal fourth quarter earnings to cover severance payments.

The layoffs were the initial phase in its effort to cut costs by at least $40 million, the company said, saying it was determined to reverse a string of losses that culminated in its fiscal third quarter loss of $58 million or $5.14 a share.

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they wouldn`t be laided off- it`s as simple as that. it`s a walmart world-25 cents a hour labor and next year it`s 23-