News

19 November 2008

 

KLA-Tencor to cut global workforce by 15%

KLA-Tencor Corporation of Milpitas, CA, USA plans to reduce its global workforce by around 15% by 30 June 2009. The firm says that the staff-cuts are in response to current market conditions, and are part of several cost-reduction actions being taken in an effort to lower quarterly operating expense run rate to approximately $165-170m by the end of fiscal year 2009.

“Our employees are the heart of our organization, so it is with considerable reluctance that we are proceeding with this necessary reduction,” said Rick Wallace, CEO of KLA-Tencor. “We will continue to monitor the demand environment and make the necessary adjustments to weather this downturn, help optimize our profitability, maintain our strategic focus and strengthen our competitive position.”

In connection with the workforce reduction, KLA-Tencor expects to incur an initial charge in the range of $15-20m, almost all of which is related to severance costs. Substantially all of that charge will result in future cash expenditures, which the firm believes will be paid out in fiscal year 2009.

See related item:

KLA-Tencor president and COO Kispert plans exit

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