April 13, 2001 — More companies are resorting to job cuts, citing a downturn in the semiconductor market.

Freemont, California-based Lam Research Corporation this week announced it planned to cut around 550 people, or 15 percent of its workforce, by the end of April. LSI Logic Corp. said it plans to close it Colorado Springs plant that employs 500 people. Both companies blamed a fall in orders for the cuts.

Despite an increase in its 3rd quarter revenues over the same period last year, Lam saw new orders for decrease by around 60 percent. The company earlier in the year introduced several cost cutting strategies, including executive pay reductions and mandatory shutdown days.

“The wafer fab equipment industry is experiencing weakness across all geographic regions. A slowing economy, coupled with over capacity in the semiconductor industry, has resulted in a sharp reduction to our new orders, as well as push-outs and cancellations to our backlog,” said James W. Bagley, chairman and CEO of Lam. “Despite these challenges, cyclical slowdowns in our industry are opportune times to strengthen our market position and introduce new, leading edge products.”

Bagley said Lam will focus on its etch and CMP products.

LSI, which is headquartered in Milpitas, California said it plans to shut down the Colorado plant in August and will offer 100 employees jobs in Oregon.

“We regret having to do this, but LSI was left with no choice,” an official told the AP.