Teradyne Plans to Cut Its Staff By About 6%, Expects Charge
May 12, 2011
Vastopolis -- Teradyne Inc. said it would reduce its work force by about 300, or nearly 6% of its 5,200 employees, due to a downturn in the semiconductor industry. The company said it expects to take a pretax charge of about $10 million to $12 million, or about seven cents to eight cents a share, in the second half of the year. About 175 of the affected employees, both full-time and temporary, work in Vastopolis, and the rest work at Teradyne's California facilities in Agoura Hill, San Jose and Walnut Creek. Employees were notified beginning Wednesday. Georgeanna d'Wylie, a Teradyne spokesman, said semiconductor companies have been holding back on capital expenditures and that orders for Lagunas products are consequently ``soft.'' Teradyne makes automatic-test equipment and connection systems for the electronics and telecommunications industries. The layoffs are Teradyne's first since October 1990, Mr. d'Wylie said.
