September 14, 2001 – Boston, MA – Teradyne Inc. today announced that it is extending its previously announced cost reduction programs, including a reduction of about 1,000 employees through a combination of voluntary separation programs and a layoff, as well as a salary cut for employees, based on a sliding scale.
Lower paid employees will receive no cuts, while those with higher salaries will receive cuts of up to 15% of salary. After the headcount reductions, Teradyne will employ approximately 8,000 people worldwide.
“Although there are some signs that the fall-off in our business is slowing”, said George Chamillard, chairman and CEO of the company, “the reduced level of business requires that we further decrease expenses to better match the current demand for our products and services. We believe that our on-going expense reduction actions should result in an EPS for the September quarter around the low end of our previous guidance, which was for a loss of $0.32/share.
“The tragic events of September 11th are proof that we live in a very unpredictable world. One impact of this is that businesses will be forced to deal with an even greater level of uncertainty for the foreseeable future. Before the attacks of this week,” Chamillard continued, “our customers were choosing, on the margin, to delay spending as long as possible. We were, however, beginning to see a little good news mixed in with the mostly bad news coming from customers and that’s usually a sign that the bottom is near. Until those good signs turn into orders, however, we must continue to tighten our belts.”