Agilent to Lay Off 600
According to Agilent’s conference call, the restructuring will be weighted so that the reductions at BAM will represent approximately 30% of the $150 million in savings. On the call, Mr. Sullivan stated: “We remain steadfast in managing our cost structure through the downturn and maintaining operating profit increments of 30%–40%, consistent with Agilent’s operating model.” The latest downsizing follows December 2008’s targeted operational restructuring (see IBO 12/31/08).
Santa Clara, CA 2/17/09—Due to lower than expected fiscal first-quarter revenues, Agilent Technologies has announced a restructuring of its global infrastructure operations, the shut down of two small board-inspection businesses in the Electronic Measurement unit and the layoff of 600 employees. The restructuring is expected to reduce ongoing operating costs by $150 million. Agilent estimates costs of around $100 million for the restructuring. Agilent consists of three units: Bio-Analytical Measurement (BAM), for which revenue fell 1% in the first quarter to $525 million (see page 9); Electronic Measurement, for which sales declined 23% in the first quarter to $596 million; and Semiconductor and Board Test, for which sales fell 49% to $45 million. “We don’t know where, or when, this recession will bottom. But, we will remain proactive in addressing the economic challenges we face, and we are committed to delivering performance consistent with Agilent’s operating model,” stated Agilent President and CEO Bill Sullivan.
