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Staff cuts continue Three more company names were added to the growing roll of equipment companies cutting staffs: Brooks Automation, CFM Technologies and Mattson Technology. Previously, Lam Research laid off 700 employees (EN, Feb. 16), Semitool cut roughly 85 jobs (EN, Feb. 2) and Watkins-Johnson cut 72 from its Semiconductor Equipment group (EN, Feb. 2). Also, Intevac said it would trim its workforce by 20 percent, approximately 100 employees, and Advanced Semiconductor Materials International said it conducted a restructuring early this year (EN, March 9). In this installment, Mattson Technology said it will dismiss 15 percent of its total workforce due to earnings below expectations. The company blamed the revenue shortfall on Asian pushouts and order cancellations. The company anticipates that its revenues for the quarter ending March 29 will be $20 million to $23 million. For the next quarter ending June 28, Mattson warned that revenues may be even lower, prompting the company to forecast a significantly higher net loss for the quarter. To respond to the crisis, the company planned the layoff. In addition, Mattson will enact a 10 percent pay cut on executives, and place tighter controls over spending. For its part, CFM Technologies, Inc. disclosed that it will cut 78 jobs, or 19 percent, off the company's work rolls, currently 407 employees. Expecting a softening of demand to continue over the next several quarters, CFM president/CEO Roger Carolin said, "As a result, we are taking what we believe to be the necessary actions to better align our costs with these industry conditions and overall reduced demand for semiconductor and FPD capital equipment." He said the company's senior management has voluntarily taken a 15 percent reduction in current compensation, "which will remain in effect until conditions improve." However, the company will maintain key investments in new product development, according to Mr. Carolin. Brooks Automation issued a warning that its second quarter of 1998, ending March 31, will fall below securities analysts' expectations. Revenues will be significantly below the consensus estimate of breakeven, $19 million to $21 million, the company said. During the current quarter, Brooks experienced "several significant customer requested shipment delays of core 200mm products, as well as order cancellations from other customers discontinuing certain product lines." The cutbacks became necessary "when the market turned down, or I should say the flat panel market turned off," said a Brooks spokesperson (see story, page 32). Consequently, Brooks has restructured its FPD group to "further align its cost structure with market conditions." The company reduced its global workforce by 11 percent earlier in the quarter, resulting in a nonrecurring charge of approximately $400,000 for severance compensation. Brooks achieved this by consolidating its wafer and FPD groups, eliminating some FPD management and a few engineers, the spokesperson said. In addition, Brooks expects to record a nonrecurring charge in the second quarter for inventory write-offs. Brooks anticipates that the debut of a new FPD robot in the coming months has undercut its existing generation of products. Already receiving advanced orders for the new FPD machine, Brooks anticipates that those customers mired in the FPD falloff will, after the downturn subsides, want to buy the new robot as well, meaning this downturn will claim some product lines as casualty victims. According to Robert Therrien, president/CEO of Brooks, the company remains cautious about when growth in the semiconductor fabrication equipment sector will return. Its second-quarter results will be reported on April 16. |