Varian Inc. said Friday it plans to cut 240 regular employee and 80 temporary positions and close some facilities.
Palo Alto-based Varian (NASDAQ:VARI) said it expects to incur costs of $8.5 million to $10.5 million by the moves, but will save from $20 million to $24 million yearly.
"In the face of continuing uncertainty in the global economic environment, we are taking proactive steps to reduce our cost structure, and position us to respond to demand fluctuations while continuing to invest in new product development and maintaining our high standard of customer service and support," said CEO Garry W. Rogerson.
The company also instituted a salary freeze and restrictions on hiring and discretionary spending, said Rogerson.
Varian, a supplier of scientific instruments and vacuum technologies for life science and industrial applications, also said it expects first quarter sales between $205 million and $210 million and earnings per share between 41 cents and 45 cents.
"Sales were below expectations in the first quarter primarily due to lower revenues from research products (in particular NMR and imaging systems)," the company said. "Despite order weakness late in the quarter, in particular for certain vacuum and analytical products, total company orders exceeded sales for the quarter."
The company did not say what type of jobs it will cut, or provide information about the facilities it plans to close.
Email This Page!