Varian Inc., the Palo Alto, Calif.-based maker of scientific instruments, is planning to eliminate approximately 240 regular employee and 80 temporary positions and to close certain facilities. The company did not disclose details about the cuts or the facilities to be shuttered.
"In the face of continuing uncertainty in the global economic environment, we are taking proactive steps to reduce our cost structure, and position us to respond to demand fluctuations while continuing to invest in new product developments," said Garry W. Rogerson, Varian’s CEO and president.
"We expect these actions will cost between $8.5 million and $10.5 million and result in a reduction of our annual operating expenses of between $20 million and $24 million once fully implemented. In addition to these restructuring actions, we have also instituted a salary freeze and restrictions on hiring and discretionary spending," Rogerson said.
"Looking forward, these actions, combined with the positive impact of efficiency improvement activities implemented in recent years, should help us to maintain solid adjusted operating margins and cash flow from operations even if revenues decline,” he said. “We will continue to monitor the economic situation and make the appropriate business decisions to remain successful throughout this challenging period, position ourselves for the economic recovery, and deliver on our long-term strategic plan."