FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): December 18, 1996
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Zenith Electronics Corporation
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(Exact name of registrant as specified in its charter)
Delaware 1-4115 36-1996520
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(State or jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
1000 Milwaukee Avenue
Glenview, Illinois 60025
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code (847) 391-7000
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Not applicable
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(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
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On December 18, 1996, the company announced that in a major
restructuring designed to help accelerate the company's return
to profitability and conserve cash, it is cutting its U.S.
workforce by more than 25 percent. The employment reductions
are expected to reduce expenses by approximately $20 million
in 1997, and will require a fourth-quarter restructuring
charge of approximately $25 million. In October, the company
reported net losses of $109 million for the first nine months
of 1996. The company is in discussions with its lenders and
expects to amend certain financial covenants in its lending
agreement.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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Exhibit No. Exhibit
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99 Press Release dated December 18, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ZENITH ELECTRONICS CORPORATION
(Registrant)
By: /s/ Richard F. Vitkus
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Richard F. Vitkus
Senior Vice President, General
Counsel and Secretary
Date: December 18, 1996
<PAGE>
EXHIBIT INDEX
Exhibit No. Exhibit
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99 Press Release dated December 18, 1996
Exhibit 99
[LOGO]
NEWS RELEASE FOR IMMEDIATE RELEASE
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ZENITH TO CUT U.S. WORKFORCE BY 25 PERCENT
GLENVIEW, ILL. Dec. 18, 1996 -- In a major restructuring designed to help
accelerate the company's return to profitability and conserve cash, Zenith
Electronics Corporation (NYSE:ZE) is cutting its U.S. workforce by more than
25 percent.
Peter S. Willmott, who was elected president and CEO last month, announced
today that Zenith plans to eliminate about 375 salaried positions, reducing
its U.S. salaried workforce to fewer than 1,500 positions. In addition,
Zenith plans in 1997 to cut about 800 hourly positions (largely through
attrition) at its Melrose Park, ILL., color picture tube plant as new
automated processes improve productivity. This will reduce Zenith's total
U.S. hourly workforce to about 2,000 positions.
"Our fixed costs are simply too high for a company with sales at our
levels and reporting such huge losses," Willmott said in a letter to
employees. He called these actions "a necessary step in Zenith's turnaround
process."
The employment reductions are expected to reduce expenses by
approximately $20 million in 1997, and will require a fourth-quarter
restructuring charge of approximately $25 million. In October, Zenith
reported net losses of $109 million for the first nine months of 1996.
The company is in discussions with its lenders and expects to amend certain
financial covenants in its lending agreement.
Zenith Electronics Corporation, based in Glenview, ILL., is a leader in
consumer electronics and network systems technologies. Zenith's largest
shareholder is LG Electronics Inc., which owns 55 percent of the company's
outstanding shares.
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CONTACT: John Taylor (847) 391-8181
