In connection with the previously announced workforce reduction and the additional workforce reduction announced on May 30, 2007, the Company has taken specific actions in the second quarter of 2007 that will affect approximately 2,100 employees. The result will be a net pre-tax charge in the second quarter totaling approximately $101 million (comprised of $115 million in charges associated with the actions described above and $14 million in reversals for accruals from prior periods that are no longer needed).
When I do the math for taxes and share counts, it looks like the charge will amount to $0.03 per share. Which doesn’t sound like much until you check the earnings estimates, and find that $0.03 was all the company was expected to earn in the quarter. Easy come, easy go.