California-based chip equipment maker KLA Tencor said it will lay off another 10 percent of its global workforce, sacking off 550 employees as it gets weighed down by the gloomy chip market.
The job cut follows the earlier 15 percent cut announced in November, in a move to lower operating costs to between $140 million and $145 million a quarter by the end of the year, said the company.
Further, the company said it also will reduce the number of factories, force employees to take time off and reduce stock-purchase benefits. The recession has hurt sales at computer and mobile- phone makers, crimping demand for chips.
“Although we have been successful in our efforts to reduce operating costs in late 2008 and early 2009, we must now further reduce our operating expenses in order to respond to the current demand environment,” said Chief Executive Rick Wallace.