Keithley cuts 5% of workforce

The test company expects a $1.6 million charge on the action and projects a minimal impact on new product development activities.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 9/26/2008

Keithley Instruments Inc has cut 5% of its workforce as it attempts to reduce operating expenses by approximately 7%.

The test company did not state total operating expenses nor the total amount of jobs cut. As of September 30, 2007, Keithley employed 698 people, 202 of which were based in the United States. The company did say, however, that the 7% savings will be offset partially by inflationary and other cost increases that are expected to be incurred during its fiscal year 2009, which begins in October.

"While our long-term outlook is positive, we believe it was necessary to act in response to the continued weakness in semiconductor capital spending, as well as a general weakness in other industries in which we participate," Joseph P Keithley, the company's chairman, president, and CEO, in a statement Thursday afternoon. "The actions we have taken will have a minimal impact on new product development activities and will not affect those products that we plan to introduce during the next twelve months."

Recent product announcements from Keithley include the expansion of its Series 3700 system switch/multimeter and plug-in card family and the introduction of Version 7.1 of the KTEI (Keithley Test Environment Interactive) for the company’s Model 4200-SCS semiconductor-characterization system.

The company expects that non-recurring severance and related costs for implementation of its actions will total approximately $1.6 million, with all of the charges being incurred in the current year's fourth quarter ending September 30. Based upon current expectations, the company is estimating net sales for the September quarter to range between $33 million and $35 million, as compared to fiscal Q3 sales of $41 million.

In related test news, LTX-Credence last week approved a plan to cut jobs and close some "redundant facilities" as the merger of the test and measurement war-horses continues to progress.

Lattice and Nvidia also announce layoffs last week.