Agilent Technologies Inc. said Thursday it plans to cut 2,700 employees as revenue in its electronic measurement unit falls 30 per cent to its lowest level in 10 years. The Santa Clara, California-based company will also temporarily suspend its share-buyback program until the end of fiscal 2009 in order to conserve cash.
Agilent, the company spun off from computer giant Hewlett Packard in 1999, said the restructuring effort will cost $160 million, but its plans will save $300 million a year in the electronic measurement part of its business and it will move to cut another $10 million in its chip testing unit.
The company projected revenue in the semiconductor and board test segment is expected to drop 50 per cent from 2008 levels, about 65 per cent below peak volume.
In a statement, Agilent CEO Bill Sullivan said that "business remains severely depressed, and there are no prospects for a meaningful recovery in the foreseeable future."
Agilent was created in 1999 as an $8-billion company with about 47,000 employees, manufacturing scientific instruments, semiconductors, optical networking devices, and electronic test equipment for telecom and wireless R&D and production. Presently it employs around 19,000 employees.