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Learning Co. cuts 500 jobs
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September 11, 1998: 8:42 a.m. ET
Broderbund integration leads to layoffs, consolidation of facilities
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NEW YORK (CNNfn) - The Learning Co., Inc. said Friday it will eliminate 500 jobs and consolidate several facilities as it begins its integration of Broderbund Software Inc.
The company said the move will yield annual cost savings of $50 million.
Most of the staff cuts will be centered in Broderbund's manufacturing facilities in Petaluma, Calif., which are expected to be closed in mid-November 1998 and integrated into Learning Co.'s existing manufacturing and fulfillment operations.
The software developer also expects to consolidate its multiple Novato, Calif., facilities into one location.
Severance charges of approximately $15 million and other one-time restructuring charges will be expensed in the company's third-quarter 1998 results.
Broderbund's education brands will be consolidated under Learning Co.'s Learning division and the company's Mindscape division will take over Broderbund's productivity, reference and entertainment brands.
"The integration of Broderbund into The Learning Company organization is a key element in our long-term strategy to be the leading provider of consumer software for the entire family," said Michael Perik, the company's chairman and chief executive.
Shares of the Learning Co. (TLC) jumped 5/16 to 19-5/8 on the New York Stock Exchange Thursday. 
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