Electro Scientific Industries Inc. plans to merge divisions and lay off 55 workers

December 24, 2004 – Electro Scientific Industries Inc., which makes manufacturing equipment for the semiconductor industry and other high-tech markets, has announced that it will merge three divisions and cut about 55 jobs next month, reported The Oregonian.

ESI said it plans to cut 9% of its roughly 630 employees. Most of the cuts will come at ESI’s Portland,OR, headquarters, and the company will take a $1.3 million charge against the current quarter’s earnings to cover costs associated with the restructuring.

The reorganization will make ESI a leaner, more nimble company by centralizing operations, Dodson said. ESI’s semiconductor, passive components, and electronic interconnect divisions will be merged into one division, he said, responsible for research, development and engineering.

“We’re structuring ourselves (to be) more like a small company,” said Mike Dodson, ESI’s CFO. “We probably had a structure of a much larger company, but we didn’t have the scale to justify that.”


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