February 14, 2001–Willow Grove, Pennsylvania–Kulicke & Soffa Industries, Inc., a leading supplier of semiconductor interconnect equipment, materials and technology, has announced a workforce reduction of approximately 300 people representing about 7% of its total workforce.
“In light of the lower order activity we have experienced over the last few months, K&S must adapt its cost structure to the realities of the semiconductor industry,” says C. Scott Kulicke, chairman and chief executive officer. “While we regret the effect these actions will have on our employees, such reductions are critical to remaining competitive in today’s environment. By aggressively matching costs with our current revenue outlook, we expect to ensure our fiscal health and be positioned to take advantage of future business opportunities. Looking ahead, we do not anticipate a return to a more robust business cycle before the end of the 2001 calendar year. The steps we are taking today should position the company to better serve customers and at the same time, maintain shareholder value.”
While it is expected that some of these layoffs will occur later in calendar year 2001, most of the reduction will take place in the current quarter and will principally include positions in the equipment segment which has experienced weakened business conditions.