SAN JOSE, Calif. (AP) -- Chip equipment maker Novellus Systems Inc. said Tuesday that it will shrink its work force by 10 percent and cut its chief executive's pay in half as sales dry up.
Novellus said it expects at least a 10 percent revenue decline from the previous quarter to result in a loss of 15 cents per share or more. Analysts polled by Thomson Reuters expect a loss of 4 cents, on average.
Novellus said its Korean memory customers have delayed orders, hurting revenue for the quarter and into 2009.
The company said it will reduce its head count by 10 percent through attrition and layoffs by the end of January. Novellus has about 3,500 employees, according to its Web site, meaning it will cut about 350 jobs.
The company expects a $12 million restructuring charge for the fourth-quarter and said it is also evaluating $238 million in goodwill on its balance sheet for a possible impairment.
In a statement, Novellus Chief Executive Richard S. Hill said he will take a 50 percent pay cut and forego bonuses and stock option grants for 2009.
The company reported a sharp decline in revenue for the third quarter in October, warning that the economic downturn would hurt its performance over the coming months.
Novellus shares rose 49 cents, or 4 percent, to $12.67 in morning trading.