KLA-Tencor (KLAC) to Cut 15% of Global Workforce; Sees Actions Reducing Qtr. Expenses by $165-$170M

November 18, 2008 4:40 PM EST

KLA-Tencor Corporation (NASDAQ: KLAC) announced today that, in response to current market conditions, the company plans to reduce its global workforce by approximately 15% by June 30, 2009. This reduction is one of many cost-reduction actions the company is taking in an effort to lower the company's quarterly operating expense run rate to approximately $165-170 million by the end of FY09 in response to the current demand environment.

KLA-Tencor currently estimates that, in connection with the workforce reduction, it will incur an initial charge in the range of approximately $15-$20 million, almost all of which is related to estimated severance costs associated with the workforce reduction. Substantially all of that charge will result in future cash expenditures, which KLA-Tencor believes will be paid out in FY09. KLA-Tencor anticipates incurring additional restructuring charges, severance costs and other related expenses in connection with the workforce reduction at least through the remainder of FY09 but is unable to estimate the aggregate amount of such additional charges at this time.

KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor manufacturing and related microelectronics industries worldwide.

Related Categories

Corporate News
Guidance

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?