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Novellus to shed 350 jobs as Korean memory customers push out orders
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Like many semiconductor equipment suppliers that had already begun a series of cost cutting and overall restructuring efforts in light of rapidly declining capital spending, Novellus Systems is making further cuts to lower is break even level.
Novellus is to reduce its workforce by approximately 10%, which equates to approximately 350 positions by January 31, 2009. Novellus expects to incur approximately US$12 million in related restructuring charges that will be attributed in its fourth quarter financial figures.
Richard S. Hill, Chairman and CEO of Novellus will also take a salary cut of 50% as well as give up his bonus program and stock option grants in 2009.
Novellus cited the push out of equipment bookings and shipments to Korean memory manufacturers just in the last week as a key reason for the revised cost cutting measures, as it now expects to generate an operating loss for the quarter, while visibility into 2009 remains ‘extremely limited’.