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Tuesday, April 21, 2009
Cognex cuts 85 jobs, lowers salaries, freezes hiring
By Mass High Tech staff
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Cognex Corp., a Natick-based maker of industrial sensors and systems, has announced significant cost reduction measures to save $15 million in additional annual expenses. These cost-cutting measures include 85 employee and contractor jobs cut, reductions in some executive salaries, cancellation of most current open positions, mandatory shut-down days, reduction in company contributions to employee 401(k) plans, cuts in discretionary spending and reduction in leased office space.
These actions are expected to cost the company an upfront $4 million charge.
Last November, Cognex (Nasdaq: CGNX) eliminated 60 positions and closed its distribution facility in Georgia, folding the operations into the company’s Natick facilities. Those cost-cutting measures were expected to save the company $6 million annually.
According to a statement by Cognex chairman and CEO Robert Shillman, “Conditions have deteriorated beyond what we had anticipated last fall.”
In its December quarterly financial report, Cognex listed its employee count at 832. The company reported net income of $27.3 million on total revenue of $242 million for 2008.
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