TOKYO -- Tokyo Electron Ltd. (TEL), world's second largest vendor of chip-making equipment, said Thursday (July 30, 2003) it would cut 10 percent of its workforce to about 9,000 people by March 2004 and curb capital investment and R&D spending, according to a Reuters report.
The company also made major job cuts in its previous financial year to address a downturn that for chip equipment companies has lasted since 2001 (see April 30 story).
The disclosure that a further 10 percent of jobs would be cut was made as TEL announced poor results for the first quarter of its 2004 fiscal year. The company expects to remain loss-making for the business year to March 2004, a third consecutive annual loss, the report said.
TEL made an increased loss of 10.37 billion yen (about $86.2 million) for the quarter to June 30 on sales of 87.78 billion yen (about $730 million) down 4.9 percent year-on-year.
The loss compared with one of 4.17 billion yen (about $34.7 million) for the year-ago period and was scored despite cost cutting measures.
"Orders from Japanese manufacturers grew in the first quarter and we expect orders from Taiwan, South Korea and other Asian countries to rise in the second quarter," said Kazuya Nanbu, director of Tokyo Electron's corporate communications department, according to Reuters.
Nanbu said the company could reap benefits from its restructuring efforts from the second quarter, the report said.