Manufacturing-instruments maker MKS to cut 600 jobs, or 23 per cent of workforce
03 Apr 2009
NASDAQ-listed chip equipment maker MKS Instruments Inc said it cut about 23 per cent of its workforce in the quarter and expects to take a charge that would result in a wider-than-expected net loss for the first quarter.
MKS, which cut 10 per cent of its workforce in January, said the total number of job cuts would now be around 600. Weak demand from its markets, including the original equipment manufacturers, has sparked further cost-cutting measures such as job cuts, CEO Leo Berlinghieri said.
''As we previously announced, we implemented a reduction in work force early in the quarter. However, due to the uncertain effect of the global financial crisis and its impact on demand from our semiconductor equipment (original equipment manufacturers), it was necessary to take further actions to reduce our costs and headcount,'' said Berlinghieri. He said the workforce reduction would save the company $40 million in compensation costs.
MKS Instruments and many other instrumentation companies have been hit hard by a deep and protracted slowdown in semiconductor production, led by sharply lower consumer demand for electronics. Including special charges, which includes $6.3 million to $7.0 million related to workforce reduction, MKS expects net loss of 57 cents to 54 cents a share, compared with its prior outlook of 46 cents to 31 cents a share.
Excluding items, the company said it expects a net loss of 41 cents to 38 cents a share. It previously forecast adjusted loss of 40 cents a share. Revenue was projected in the range of $74 million to $76 million, compared with its earlier forecast of $75 million.
Shares of MKS Instruments closed at $16.48 Thursday on NASDAQ.
