Thanks for your response, when I have more time, I will read through
everything to get myself up to speed on the company. I did some quick estimates based on numbers floating around and came up with the following example of what potentially the company may save based on the criteria of 500 US workers being replaced with the Penang employees.
If we use the bottom dollar figure of $11.00 and use the lower range
figure of 30% to cover, health, vacation, paid holidays, fica... we
come up with an hourly cost of $14.30.
$14.30 x 2080 work hours in a year = $29,744.00
$29,744.00 x 500 US employees = $14,872,000 in labor cost in Roy.
I have seen two figures mentioned so far regarding labor costs in Penang, those being its labor costs between 20% and 25% of US labor.
costs. In the example I am using the more conservative 25% figure.
500 employees in Penang will cost the company $3,718,000 or an annual savings of $11,154,000. This does not include interest income earned for use of the money during the year.
Iomega is also closer to their suppliers and are able to reduce shipping and inventory costs. No figures available at this time.
I am not trying to hit the numbers on the head right now, but am trying to get a better feel for what we can expect this year regarding costs and ALSO, the reduction in various taxes.
As we can see, these numbers are significant.
Thanks for your response.
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