Teradyne Corp. is expected to cut 400 jobs or 7 percent of its workforce to offset the slower than expected chip equipment recovery, according to a report from SG Cowen Securities Corp.

The cut will help save the company about $40 million in annual costs, according to the report. It will also reduce its breakeven point to $330 million in sales per quarter, compared to $350 million before the action. 

When asked if Teradyne would resort to layoffs in order to cut costs, a company spokesman said: "We have not announced a decision to that effect."

The spokesman added that Teradyne is on track and determined to reach the breakeven of $350 million by the fourth quarter of this year. The company has made no announcement regarding a move to lower its breakeven point.

Teradyne reported sales of $331.5 million for the second quarter of 2003, and a net loss of $52.5 million, or minus $0.28 per share. This compares to sales of $309.9 million and a loss of $50.7 million a year ago.

By: DocMemory
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