Geospace Technologies Corp. (NASDAQ Global: GEOS) plans to further reduce its operating costs in 2016. This initiative is expected to be completed by the end of the company’s second fiscal quarter ending March 31.
The cost-reduction program is expected to produce approximately $7 million of annualized cash savings over and above measures already implemented in its first fiscal quarter ended Dec. 31, 2015. The majority of savings will be realized through a reduction of more than 150 employees from the company’s Houston-area workforce. In connection with the workforce reduction, the company expects to incur $0.9 million of termination costs in its second fiscal quarter ending March 31. Additional cost savings will be realized through a facility consolidation, along with expense reductions in other areas.
Geospace Technologies designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize, and monitor hydrocarbon producing reservoirs. The company also designs and manufactures non-seismic products, including industrial products, offshore cables, thermal printing equipment, and film.