Lam Research said this week it would cut 600 jobs or 15% of Lam's total headcount and will impact regular, temporary, and contract employee positions.

Calling the effort a restructuring plan, Lam said the cuts are expected to be completed during the first calendar quarter of 2009 and are expected to result in annualized cost savings of approximately $60 million.

Lam said it is implementing further cost-reduction activities that are targeted to result in annualized cost savings of approximately $20 million for a total annualized cost savings of approximately $80 million. The company did not detail those activities in its SEC filing.

Lam said all of the charges related to the layoffs will result in cash expenditures and will be recorded in the current and following quarter. The company did not estimate those charges.

The move was not entirely unexpected. Lam President and CEO in late October described the industry slump as "the second worst downturn, in terms of size and scale and scope, that I've had the opportunity to witness," and that "the length and volatility of this downturn are unpredictable at this time." Newberry made the comments after the Fremont, Calif-based provider of wafer fabrication equipment and services reported revenue for the September quarter of $440.4 million, compared to revenue of $566.2 million for the June quarter.

The job cuts also come after fellow capital equipment industry companies Applied Materials and KLA-Tencor this month both announced workforce reductions, slicing 1,800 and 900 employees respectively.

By: DocMemory
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