ATE vendor Teradyne Inc. plans to cut 350 jobs and will implement more pay cuts, according to a new regulatory filing with the U.S. Securities and Exchange Commission

''The terminations are expected to be completed in the second quarter of 2009, and to result in an estimated total severance cash charge of approximately $12 million that will be expensed in the second quarter of 2009,'' according to the filing.

The company is also further reducing the annual base salaries of executive officers, including the chief executive commencing May 1, 2009, according to the filing.

''This reduction is in addition to earlier reductions which were implemented on October 1, 2008 and February 1, 2009. When compared to the 2008 executive officer annual base salaries, the effect of the three reductions is that the annual base salary of the executive officers including the chief executive officer has been decreased by 20 percent from their respective 2008 or starting salary levels,'' according to the filing.

Other ATE vendors, including Advantest, Credence/LTX and Verigy, are also suffering amid the downturn. In January, Teradyne reduced its its worldwide staff by about 14 percent and implemented a 10 percent broad-based temporary pay cut.

By: Docmemory
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