LIVERMORE, Calif. (AP) -- Chip testing equipment maker FormFactor Inc. said Wednesday it will trim its work force by about 8 percent as it aims to reduce expenses.
The Livermore, Calif., company said it will incur restructuring charges of about $5 million in its fiscal second quarter, and the staff reduction was one of several cost-cutting actions being done to reduce quarterly, adjusted operating expenses.
"The decision to eliminate jobs is a very difficult one, but we believe this action is crucial to our goal of simplifying the structure and getting back to basics," CEO Carl Everett said in a statement from the company.
FormFactor had 808 regular, full-time employees at the end of last year, mostly in North America, according to its annual report. The company also had employees in Japan, South Korea, Singapore, Taiwan and Europe.
Everett, a board member, became CEO last month after FormFactor announced the resignation of Mario Ruscev. Chief Financial Officer Jean Bernard Vernet also resigned and was replaced by board member Richard DeLateur.
The company said then the new leaders will improve business, realign operating structure and expenses and focus on profits, and conduct a review to look for ways to grow.
FormFactor shares fell 10 cents to $11.74 in morning trading.