Trikon and Endwave announce job cuts
"The present poor market conditions and the industry-wide lack of visibility of a recovery mean that it is now appropriate to reduce the quantity, but not the quality of Trikon’s capability to manufacture, ship and support systems," said Nigel Wheeler, president and CEO. "These headcount reductions will be worldwide and in all departments, though product and process developments and the support of strategic programs and system placements will be minimally affected."
Endwave to lose 40% of its staff
Endwave Corporation, a provider of RF subsystems, has provided details of its restructuring plans, which will include a 40% reduction in the company s workforce. The changes will leave the company with about 130 employees and will be implemented primarily during the third quarter 2002. Headcount reductions will be made at all levels in manufacturing, sales and marketing, administration and engineering, and at the company s Sunnyvale and Diamond Springs, California locations.
Endwave says that the restructuring plan is necessary in light of recent market projections postponing any meaningful telecom market recovery until at least 2004, and in preparation for the transition to offshore manufacturing.
"These changes reflect our belief that no recovery of the telecom market will occur before 2004, and in response, position the company to realize significant cost savings in the fourth quarter and going forward," said Edward Keible, CEO and President of Endwave Corporation. "We believe this reduction in force and move to offshore manufacturing, in combination with our previously-implemented gross margin improvement programs, will enable us to achieve improved financial performance on relatively flat revenues for 2003."
The company will take a special charge in the third quarter related to the restructuring plan in the range of $4.5-5.5 million, comprising severance costs of approximately $1.5-2.0 million and reserves for equipment impairment and facilities consolidation of $3.0-3.5 million. The company expects the restructuring to reduce annual cash usage by approximately $5.0 million.
Although the company will reduce excess engineering capacity, it continues to focus on developing and pursuing new opportunities in adjacent market segments, such as defense and instrumentation, and continues to pursue its consolidation strategy.
