Cymer Lays Off 8 Percent of its Global Workforce
San Diego’s Cymer (CYMI), widely viewed as a bellwether for the chipmaking industry, says it will reduce its worldwide workforce by 85 employees, or about 8 percent.
Cymer makes sophisticated ultraviolet lasers that serve as the light source in a photolithographic process used by nearly every semiconductor manufacturer to make advanced microcircuits. The company’s technology is essential for chips used in computers, cell phones and wireless devices, iPods, and other consumer electronics.
Cymer says it expects to record roughly $3.2 million in restructuring charges related to its workforce reduction in its fourth quarter financial results. The company expects the cuts will result in savings of about $8.4 million a year.
Cymer is known for closely managing its resources in anticipation of swings in the volatile semiconductor industry. Ed Brown, Cymer’s chief operating officer, said in a statement that the company had previously implemented a series of cost-saving measures, including cutbacks in employee travel, accrued vacation, outside services, and other discretionary spending cuts.
“Given the severity of the slowdown in the economy and semiconductor industry,” Brown said, “this step is necessary to align our cost structure with forecasted business levels.”