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FSI International introduces cost reduction plan and job cuts
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Equipment manufacturer FSI International, Inc. has announced its financial results for the fourth quarter of 2008 and its subsequent decision to implement cost-cutting measures. Since the end of the third quarter, the company has cut 14 percent, or approximately 60 posts, of the company workforce. The lower than anticipated revenues for the quarter have led the company to consolidate its Europe and United States sales and service organizations to further cut operating costs.
While the company has seen costs approximating $1.8 million in restructuring and severance, the cost reduction strategies are expected to save the company between $5 and $6 million.
“We believe that these cost reduction and cash preservation activities are prudent, given the current industry outlook,” said Don Mitchell, FSI Chairman and CEO. “We are focusing our investments, though at a reduced rate, on our strategic product development programs. Our goal in taking these actions was to retain an effective global customer support organization, while lowering our breakeven revenue level and maintain a strong balance sheet.