FREMONT, Calif. (AP) -- Mattson Technology Inc. said Wednesday that it will cut about 14 percent of its work force, or 80 jobs, as part of a plan to lower its cash losses from operations while continuing to invest in growth areas.
The semiconductor manufacturing equipment maker cited weakness in the wafer fabrication market due to oversupply in the memory segment, which has been worsened by the slowdown in the broader economy.
Mattson said that about half the cuts are manufacturing jobs, due mainly to expanded outsourcing for systems that are now made in Germany.
The company expects to report $4.5 million to $5.5 million in restructuring charges related to the layoffs -- charges that will impact its third-quarter profit and the following quarters until the plan has been carried out.
Mattson expects annualized savings of about $6 million in relation to the plan.
The company said it began giving notice on Wednesday to employees who will be laid off.
Mattson's shares ended up 8 cents to $5.20.