Question-and-Answer Session
Operator
(Operator instructions) One moment please for the first question. And your first question comes from the line of Beth Lilly [ph]. Please proceed.
Beth Lilly
Good morning.
Bob Schneider
Good morning, Beth.
Jim Thyen
Good morning.
Beth Lilly
I wanted to ask a couple of questions. Let’s start with the restructuring that’s occurring in the furniture business that you – that you approved in the first quarter. Can you talk about – and I looked through your Q, it looks like the cost for the furniture restructuring – is it $2.4 million? Is that right?
Jim Thyen
The cost that hit the first quarter with respect to restructuring in furniture, I don’t have it right in front of me, Beth, but it was not that large. I believe the total for the whole quarter is $900,000, if I think – correction, $953,000.
Beth Lilly
Yes. No, my question is, is this going to be the total cost for this – to charge in the furniture segment for the consolidation plan. Is that $2.4 million?
Jim Thyen
No. It is not that long – that high. I don’t recall offhand, Beth, how large that is.
Beth Lilly
Okay. All right. And then on the EMS segment, is the total expected costs are $23 million, correct?
Jim Thyen
Let me go back, Beth, to your first question in terms of the furniture side of the business. The total expected consolidation costs are $1 million.
Beth Lilly
Okay.
Jim Thyen
And that is pre-taxed. The European side, the total restructuring cost within that consolidation, which we had in our last 8-K, with respect – or excuse me, the 10-K, was $20.1 million.
Beth Lilly
Okay, $20.1 million.
Jim Thyen
You add the workforce reduction that we announced, I believe is March 7th, and that was $2.5 million of restructuring cost. Some of that impacted furniture, some impacted electronics, and some was corporate.
Beth Lilly
Okay. And are you able to quantify then what kind of savings you think you’re generate from these charges in the restructurings that are occurring–?
Jim Thyen
We have not disclosed the benefits for the office furniture consolidation or the European consolidation. The workforce reduction plan that we announced in March, we said at that time that it would be $12 million to $13 million annually of savings. And that’s what we’re reporting today in the press release in terms of the benefit that we’re now seeing in the first quarter that we had anticipated, and is actually occurring on an annualized basis to get to that $12 million to $13 million.
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