Friday, January 30, 2009

Teradyne slashes 14 percent of work force

By Efrain Viscarolasaga

Posting its first lost since 2007, North Reading-based semiconductor testing equipment maker Teradyne Inc. reports it will cut approximately 14 percent of its work force, while implementing a 10 percent pay cut across the company, in an effort reduce expenses.

While officials did not disclose exact numbers, the layoffs will come to approximately 500 of the company’s reported 3,600 workers, as of its last annual report.

Teradyne posted a fourth quarter loss of $53.3 million, compared to a gain of $16.7 million in the same period last year, with net revenue falling to $194.8 million from $260.4 million.

The company also projected a loss for the upcoming quarter, with sales expected to land in the $125 million to $145 million range. Teradyne reported $297 million in sales in the first quarter of 2008.

The layoffs and pay cuts are expected to save the company $140 million annually.

Officials also noted in their announcement that, despite the cost cutting measures, Teradyne is still on schedule to compete in the high-speed memory test market this year.