Nanometrics reduces workforce by 7%
This is one of the first moves seen to weather what is expected to be a slow year in the semiconductor manufacturing equipment industry.
By Ann Steffora Mutschler, Senior Editor -- EDN, January 10, 2008
In one of the first moves seen to weather what is expected to be a slow year in the semiconductor manufacturing equipment industry, Milpitas, Calif.-based semiconductor metrology company Nanometrics Inc. announced late Wednesday that it is reducing its global work force by approximately 7% in order to maintain profitability, cash flow and predictability.
This reduction will impact employees in each of the company’s locations and the company will record approximately $600,000 in restructuring charges on Q1 financials as a result of the reduction.
Analysts at market research company Gartner Inc. said last month that although the semiconductor industry is overcoming the memory oversupply situation, worldwide semiconductor equipment spending will decrease by 9.9% this year to $40.3 billion, down from $44.8 billion last year.
Tim Stultz, president and CEO of Nanometrics said in a statement, “While our longer-term outlook for the metrology sector is positive and we feel we are well-positioned in our served markets, we believe it is prudent to act in response to the softness currently seen in the semiconductor capital equipment industry.”
Stultz explained that while this was a difficult decision for the company to make, it came about as a result of its strategy to run the company with reduced sensitivity to revenue level. “We expect the cost savings to be fully realized in our second quarter 2008 financial results,” he continued.
“We remain committed to investing in research and development activities and believe that our strong product offerings position Nanometrics to demonstrate continued solid performance in the process control market,” Stultz concluded.
Cutbacks are being seen in other parts of the industry as well as talk of a potential recession continues. In the semiconductor test side of the industry, Credence Systems Corp. said Tuesday that it will be cutting 30% of its workforce by November.
