Agilent resorts to layoffs
Try as it might to weather the economic storm through cost containment and salary reductions, Agilent Technologies will resort to cutting about 9% of its workforce over the next 10 months in an effort to return to profitability.
Although loses for the third quarter were smaller than expected—24 cents per share versus a 35 cent projection—the company’s short term outlook forced more extreme measures. “It is a very difficult step to take, but we simply have to size the company to a lower level of business,” said Ned Barnholt, president and CEO at Agilent.
Orders for the quarter were down 54% from one year ago and down 5% from the previous quarter. “Even when you take into account that Q3 (2000) was extremely strong, this is a steep decline,” Barnholt said.
The announced workforce reductions include normal attrition and those affected by some restructuring that occurred in the last quarter. With its normal 7% to 8% attrition rate lowered to 4% to 5% because of the slowed economy, Agilent will be eliminating approximately another 4% to 5% by the middle of next year.
“The downturn is severe and a solid upturn appears distant,” Barnholt said.
Barnholt also said that despite a negative earnings report, the company had a positive cash flow in the quarter. He cited the positive effects of earlier cost-cutting measures, including a 10% salary reduction late last year.
“The 10% cut while it undeniably put financial pressure on our people, also made the need to cut spending much more real across the company,” Barnholt said.
A 70% increase in the use of video-conferencing reduced travel expenses by about $10 million, Barnholt said.
Want to use this article? Click here for options!
© 2013 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now