Asyst laying off 15% of staff in restructuring

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.”

Fueled by increasing demand for automation services, infrastructure investment in China, and U.S. productivity growth, the worldwide market for distributed control systems (DCSs) is expected to grow at a close to 4% compound annual growth rate (CAGR) and reach almost $12 billion by the end of 2008, according to recent research by the ARC Advisory Group.

As a result of the workforce action, 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 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 used during manufacturing.

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