Emulex Launches Cost Cutting, Stock Buyback Effort

Costa Mesa-based Emulex said Monday that it is launching a cost cutting effort, a $200M stock buyback, and that Executive Chairman Jim McCluney will exit the company's board in February. According to Emulex, it expects to save $30M in annual costs through a "cost savings program", and will purchase $200M in its shares in a share repurchase program, as part of an effort to return capital to its shareholders. The move comes as Emulex has been looking for a private equity buyer to take the company private. The company did not say how the cost cutting effort will affect its employees. McCluney had been CEO of Emulex since 2006, only becoming Executive Chairman in July.