SAN FRANCISCOFab gear vendor KLA-Tencor Corp. will reduce its global workforce by about 10 percent as part of a series of cost-saving measures, the company said Monday (March 30).
The workforce reduction and other cost-saving actions are designed to help the company reduce quarterly non-GAAP operating expenses to between $140 million and $145 million, down from a previously announced target of $165 million to $170 million, according to KLA-Tencor (Milpitas, Calif.)
Last November KLA-Tencor eliminated 900 jobs, or roughly 15 percent of the company's workforce at that time. Rumors have been circulating about another round of layoffs at the firm, with some suggesting the company could cut as much as 25 percent of its workforce.
"Today's reduction in force is an extremely difficult decision as we realize the effect this action will have on both impacted and remaining employees," said Rick Wallace, CEO KLA-Tencor, in a statement.
Other cost-cutting measures announced by KLA-Tencor Monday include the consolidation of several of the company's facilities, additional forced time off and a reduction in employee stock purchase plan benefits. These actions will be phased in over the next few quarters, KLA-Tencor said.
KLA-Tencor said it is "steadfast" in its commitment to maintain a healthy R&D program and sustain strategic business focus.
KLA-Tencor said it expects to incur charges of between $20 million and $30 million, including $18 million to $22 million for severance. The remainder of the charges are related to facility closures, the company said.