Mattson cuts 5% of workforce to save $1.9M
The supplier of advanced process equipment used to manufacture semiconductors said the savings will be absorbed in its new product development efforts, but noted that operating expenses will be maintained at the current levels.
By Suzanne Deffree, Managing Editor, News -- EDN, June 26, 2008
Mattson Technology Inc is laying off 5% of its workforce, as a result of the continuing downturn in the wafer fabrication equipment industry.
In doing so, the supplier of advanced process equipment used to manufacture semiconductors will cut 25 positions from its global workforce.
"The restructuring of our global workforce will have the effect of reducing our cost structure in selected areas, while allowing the company to continue critical investments in our new products and strategic initiatives," said David Dutton, Mattson’s president and CEO, in a statement. "Memory spending is highly cyclical and has been exacerbated by the overall weak global economy. We believe the restructuring will help to optimize our organization and position Mattson for expanded growth."
According to Mattson, the layoffs will save $1.9 million a year. The company said the savings will be absorbed in its new product development efforts, but noted that operating expenses will be maintained at the current levels. Mattson expects to record restructuring-related charges of approximately $0.7 million in connection with the reorganization in Q2.
The company on Wednesday began providing notices to those employees whose employment would be affected by the restructuring activity. Mattson expects that the workforce reduction will be completed by the end of the next fiscal quarter.
In other news of manufacturing job cuts, IBM this week laid off 180 employees from its Burlington, Vt, fab. Spansion in early June announced that it will lay off 500 employees as it continues to keep eye on manufacturing expenses. Also, ON Semiconductor in mid-May announced it would eliminate 400 positions as it closed two fabs.
