FEI Cuts Jobs, Sees Lower Profits
written by Mark LaPedus, courtesy of EE Times SAN JOSE, Calif. -- Seeking to cut costs, FEI Co. expects to reduce its workforce by approximately 3 percent to 1,800 in the next 90 days. FEI will also shift a portion of its supply chain from high-cost euro-based suppliers to lower-cost alternatives that are primarily dollar-based. It also plans to transfer the manufacturing of certain products to lower-cost areas and improve efficiency at existing factories. As a result, the metrology company expects to record restructuring charges in the second quarter of up to $5 million and further charges of up to approximately $10 million in the second half of the year. FEI also posted its results. Net sales for the quarter ended March 30, of $151.6 million were up 1 percent compared to the fourth quarter of 2007 and up 2 percent compared to the first quarter of 2007. Net income for the first quarter of 2008 was $8.2 million, compared with $15.9 million in the fourth quarter of 2007 and $15.1 million in last year's first quarter. |
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