Wilsonville-company plans to eliminate 200-plus jobs


Mentor Graphics announces a broad restructuring plan that includes a 4 percent cut in its workforce.

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BY JACOB PALMER | DIGITAL NEWS EDITOR

Mentor Graphics announced Wednesday a broad restructuring plan that includes a 4 percent cut in its workforce.

The company — based in Wilsonville — employs more than 1,000 Oregon workers, of which it will lay off about 60, according to OregonLive.com.

Mentor said Wednesday that the buyout program created an opportunity for a broader re-alignment, and it expects to replace most of the jobs vacated through the early retirements — though perhaps with new hires serving different roles at the company. Other cuts took place primarily overseas, according to Mentor.

“These restructuring activities will enable Mentor to focus personnel and resources on priority opportunities and regions of the world, deliver long-term growth and build shareholder value,” chief executive Wally Rhines said in a written statement. He said the company sees particular opportunities in embedded software, transportation and the Pacific Rim.

In total, Mentor will cut about 110 North American workers.

According to its website, Mentor develops electronic design automation software that enables “companies to develop better electronic products faster and more cost-effectively.”

Portland Business Journal interviewed Joe Reinhart, vice president of corporate development, who insisted the company has not fallen on hard times.

“It’s not uncommon for you to look at all of your resources, your people, your fixed assets and development activities periodically,” he said. “We are taking an opportunity to offer to a portion of our workforce an early retirement program, which in many instances has been well received by those who elected to use it.”

Any savings due to the restructuring will be aimed at the same functional locations or in other departments that are seen as “promising opportunities,” Reinhart said. He wouldn’t comment on the timing of any other restructuring actions, specifically when layoffs might occur in order to reach the 4 percent target. However, most of the cost associated with the restructuring is expected to be in the first quarter and most of it is expected to be personnel related, according to the company announcement. Mentor anticipates a $37 million charge in Q1, with roughly $3 million recorded in the following two quarters.

 




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