Unit Instruments Plans More Layoffs
Unit Instruments Inc., a maker of computer-chip manufacturing equipment, said Tuesday it will lay off as many as 60 full-time workers and five temporary workers as it struggles to cope with a worldwide slowdown in the semiconductor industry.
The new layoffs will be completed this week, said Gary Patten, Unit’s chief financial officer.
Unit already has laid off 21 full-time workers and eliminated 23 temporary positions this year and has frozen senior management salaries and made a “significant” reduction in capital expenditure plans, said Michael J. Doyle, the company’s president and chief executive.
Together, the layoffs represent a 22% reduction in Unit’s work force. The company said it will take a charge for expenses tied to the layoffs that will lower earnings for its fiscal first quarter ending Aug. 31. The amount was not disclosed.
The company also said it is considering other actions to reduce operating costs that could result in additional restructuring expenses for its first quarter.
The company made the announcement after the financial markets closed for the day. Shares of Unit Instruments closed unchanged at $9.75 on the Nasdaq market.
Semiconductor sales have fallen dramatically in recent months because of an oversupply of product. The slump has caused many semiconductor manufacturers to delay expansions and renovations of existing facilities and construction of new chip-making plants, eliminating a big chunk of the market for Unit’s products.
