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Mattson cutting 80 jobs in plan to reduce losses
Half of the positions impacted are in manufacturing, primarily as a result of the company's efforts to expand outsourcing operations for systems that are currently manufactured in Germany, whereas worldwide customer support will not be materially impacted.
By Ann Steffora Mutschler, Senior Editor -- Electronic News, 9/11/2008
Following a 5% cutback of its workforce in June, Fremont, Calif-based semiconductor manufacturing equipment company Mattson Technology Inc reported Wednesday that as part of a cost alignment plan meant to reduce the company's cash losses from operations while continuing strategic investments in key growth markets, it is eliminating approximately 80 positions, or about 14% of its global workforce.
The company began providing notices on Wednesday to employees whose employment would be affected by the plan. Mattson expects the headcount reduction and other cost alignment activities to be completed by the end of Q2 2009.
Mattson president and CEO David Dutton noted in a statement, "The wafer fabrication equipment market is in a protracted downturn due to oversupply conditions in the memory segment; a situation that has been exacerbated by macro-economic conditions. In response, we feel that it is prudent to implement the cost alignment plan to reduce headcount and optimize facilities worldwide."
Dutton said the intent of the plan is threefold: (i) reduce the company's cash losses from operations, (ii) continue to invest in key growth markets of dielectric etch and millisecond anneal, which the company believes positions it for market share and revenue gains upon a return to improved industry conditions, and (iii) grow its market share position in its core segments of strip and rapid thermal processing.
Mattson expects the plan to result in annualized savings of approximately $6 million, and expects to record restructuring-related charges in the range of $4.5 to $5.5 million in connection with the plan. These one-time pre-tax charges will be comprised of employee severance pay expenses and facility optimization costs and represents cash expenditures, which will result in an adverse impact on the company's Q3 earnings, and will impact subsequent quarters until the plan is completely executed.
"We are confident that the cost alignment plan will help maximize the potential of our organization and position Mattson for expanded growth," Dutton concluded.
