FormFactor announces 8 percent work force reduction to trim operating expenses

FormFactor announces 8 pct work force reduction

LIVERMORE, Calif. — FormFactor trimmed its work force by about 8 percent, the chip testing equipment maker said Wednesday, as it tries to slash expenses further.

FormFactor had 915 employees before the layoffs, which occurred Tuesday afternoon, said spokesman David Viera. Some employees left immediately, and others will stay on to meet business meeds.

The company said it will incur restructuring charges of about $5 million in its fiscal second quarter, and the staff reduction was one of several cost-cutting actions.

“The decision to eliminate jobs is a very difficult one, but we believe this action is crucial to our goal of simplifying the structure and getting back to basics,” CEO Carl Everett said.

FormFactor’s annual report, filed earlier this year, said most of its employees are in North America, but it also has workers in Japan, South Korea, Singapore, Taiwan and Europe. Viera said the company is not disclosing where the layoffs occurred or exact numbers, but 8 percent would mean more than 70 jobs.

Everett, a board member, became CEO last month after FormFactor announced the resignation of Mario Ruscev. Chief Financial Officer Jean Bernard Vernet also resigned and was replaced by board member Richard DeLateur.

The company said at the time it would realign its operating structure and expenses and focus on profits.

Shares of FormFactor Inc., based in Livermore, Calif., climbed 5 cents to $11.89 in afternoon trading.