Megatek Lays Off 70 in Cost-Cutting

Citing reduced sales of its computer-aided design and engineering systems, Megatek Corp. last week laid off 70 employees, or 22% of its work force. Nearly all of the employees who lost their jobs were based in Megatek’s Sorrento Valley offices.

A subsidiary of Westwood, Kan.-based United Telecommunications Inc., Megatek laid off the workers as part of an effort to “match overhead with revenues,” a spokesman said. He denied reports that Megatek is on the verge of being sold by its parent firm.

The layoffs occurred two weeks after Megatek hired Robert Benders as its chief executive. Benders replaced Paul Huber, who resigned to “pursue other interests,” the spokesman said.

Megatek, which at its peak in the early 1980s employed 500 people, makes a variety of design systems with prices starting at $24,500. No further layoffs are planned, the company said, adding that the firm is “turning over every stone” to reduce costs.

Megatek’s sales in 1986 were $32 million, a drop from the prior year. The spokesman would not specify the 1985 sales.