Aug. 30, 2002 – Newport, Wales, UK — Trikon Technologies Inc. has started a payroll reduction program that is projected to reduce its quarterly operating expenses by approximately $4 million in a full year. As part of the program, about 20% of its 400-person work force (80 positions) will be eliminated worldwide.
This proposal, as well as other employee cost reduction initiatives, will be discussed with staff at Trikon’s UK headquarters and manufacturing site starting today, in accordance with UK employment law, and will be finalized by September 30.
It is anticipated that a charge of approximately $400,000 will be recognized in September to implement this program with projected cost savings of $1 million per quarter from this program commencing in 4Q02.
“The present poor market conditions and the industry-wide lack of visibility of a recovery mean that it is now appropriate to reduce the quantity, but not the quality of Trikon’s capability to manufacture, ship and support systems,” said Nigel Wheeler, president and CEO. “These headcount reductions will be worldwide and in all departments, though product and process developments and the support of strategic programs and system placements will be minimally affected.”
“As Trikon is proposing to make more than 20 persons redundant from a single site, under UK employment law, there is an obligation to consult with staff representatives at least 30 days prior to the proposed termination date to seek alternative or mitigating measures,” said Chris Matthews, VP of human resources. “At this time we therefore do not know the precise make up of the payroll reduction measures, though the targeted cost saving will be met.”