FREMONT, Calif. (AP) -- Semiconductor equipment maker Mattson Technology Inc. said Thursday that it will eliminate about 25 jobs, or 5 percent of its work force, due to an ongoing downturn in the wafer fabrication equipment market.
Mattson expects the reductions will reduce costs while letting it continue investments in new products and strategic initiatives.
The company said started giving notice to employees whose jobs will be impacted by the restructuring on Wednesday.
Mattson expects to save $1.9 million per year due to the cuts, and said the savings will be put toward new product development.
Mattson predicted restructuring-related charges of about $700,000. The charges are severance pay expenses that it will record in the second quarter, the company said.
"Memory spending is highly cyclical and has been exacerbated by the overall weak global economy. We believe the restructuring will help to optimize our organization and position Mattson for expanded growth," Chief Executive David Dutton said in a statement.