Teradyne cuts work force, salaries

Teradyne today announced it is cutting its 1000 positions from its 9000-person work force and requiring pay cuts for higher-paid employees.

The job cuts will be executed through voluntary separation programs and layoffs, while the pay cuts will be based on a sliding scale, with the lowest-paid employees receiving no salary reduction and the highest-paid worker seeing cuts up to 15%.

“Although there are signs that the fall-off in our business is slowing, the reduced level of business requires that we further decrease expenses to better match current demand for our products and services,” said Chairman and CEO George Chamillard in a prepared statement. “We believe that our ongoing expense-reduction actions should result in an EPS for the September quarter around the low end of our previous guidance.”

Teradyne, which supplies testing equipment for voice and broadband networks, earlier projected a loss per share between 22 cents and 32 cents for the third quarter. For the second quarter, Teradyne reported revenues of $365.8 million and a loss of 12 cents per share after one-time items.

--Kevin Fitchard, staff writer