Asyst laying off 15% of staff in restructuring
Fremont, CA—Asyst Technologies Inc. reports that it’s laying off about 15% of its 500 employees as part of a restructuring of its ATI operations.
Fremont, CA— Asyst Technologies Inc. reports that it’s laying off about 15% of its 500 employees as part of a restructuring of its ATI operations. The downsizing includes ATI’s base business, but excludes its joint venture, Asyst Shinko Inc. The action is expected to save Asyst approximately $8-9 million per year, and reflects the firm's continuing transition of its business model.
'We have reached an inflection point in the evolution of our business model that allows us to implement long-planned adjustments to our ATI expense structure,' says Steve Schwartz, Asyst’s president and CEO. 'During the past two years, we outsourced our ATI manufacturing operations, introduced new products in all of our key product groups, and reorganized the business around a focused vision for automating semiconductor manufacturing. These activities have positioned us to implement this phase of the restructuring, which, when completed, also will contribute to lowering the ATI and consolidated breakeven levels.'
As a result of its workforce cuts, the company expects to incur one-time cash severance and termination charges of approximately $2 million in its third fiscal quarter ending Dec. 25, 2004. The company adds that it’s continuing to evaluate facility-related restructuring actions that would provide additional cost savings and would result in additional restructuring charges in future quarters. The company also anticipates ramping-down certain supply chain and administrative projects in 2005, which is expected to provide more savings.
Asyst provides integrated automation solutions that enable semiconductor and flat panel display (FPD) manufacturers to increase manufacturing productivity and protect investments in materials during manufacturing. The company offers a broad range of 200-mm, 300-mm, and FPD solutions that enable the safe transfer of material and information between process equipment and the fab line throughout the fabrication process, while reducing damage caused by human, environmental, mechanical and chemical factors.
Control Engineering Daily News Desk
Jim Montague, news editor