May 15, 2001 – San Jose, CA – Semiconductor equipment maker Silicon Valley Group (SVG) said it would cut its workforce by about 400 people, or 10% and that its 3Q01 sales would be lower than previously expected.
The company said the job cuts were in reaction to a slowdown in the industry.
The company also said in addition to the previously announced five-day shutdown in the June quarter, it would shut down operations during the weeks of July 2 and September 4, 2001. During these periods, the company will maintain its customer support requirements and expects that critical R&D projects will not be affected.
The company said revenue for the third quarter could decline 30% to 40% from the previous quarter’s $209 million. SVG’s earlier guidance had been a decline of 15% to 25%
SVG said it received requests from customers to delay shipment of product scheduled to be delivered in the current third quarter for its non-lithography sectors, and these delays have prompted the revenue revision.