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Recoton Lays Off 10% of Workforce

11/08/2002 12:21:00 PM Eastern

Lake Mary, Fla. - Accessories maker Recoton is laying off about 10 percent of its workforce, according to a Nov. 6 Securities and Exchange Commission 8-K report filed by the company.

The staff reductions, said Recoton, were in operations across the board and are part of a restructuring program aimed at reducing costs. The layoffs take the company beyond its previously announced cost-cutting measures for its video game division and manufacturing operations in Hong Kong and China.

Recoton also said it is in the process of selling certain other assets, consistent with its previously announced plans to sell off assets considered non-strategic to its ongoing business.

Although sales will not be confined to Recoton's video game accessories operations, its core U.S.-based consumer electronics operations and accessories operations are not expected to be effected.

Concerning reports that Recoton would halt all marketing activities by the end of December, the company filing said there is no truth to this information.

Recoton is scheduled to release third quarter financial results sometime next week.