17 Jun 2002
US optics component manufacturer, Newport, has cut 375 jobs from its fiber-optics and photonics divisions.
US-based manufacturer of high-precision components for optical and laser applications, Newport, is downsizing its workforce in a bid to reduce costs. Job cuts now total between 350 and 375 and include the 180 to 200 losses previously announced in July of this year.
Blaming the market downturn, Robert Deuster, chief executive of Newport, says that the job cuts will come from the company's fiber-optics and photonics divisions and will cost Newport USD 38.5 million.
"We have experienced order cancellations in our fiber-optics communications business and also from several large semiconductor-equipment customers," explained Deuster. "[As a result] we are taking more aggressive actions to resize our business, consolidate facilities and reduce costs."
Newport will consolidate its manufacturing facilities at the company headquarters in Irvine, California, while its metrology systems manufacturing will be transferred to its Swedish subsidiary CE Johansson. Consolidations will be complete by the second quarter of 2002.
Looking to the future, Deuster now expects third-quarter revenues to reach USD 62 million, with full-year 2001 revenues totalling USD 330 million. "Our more tightly integrated organizations will allow us to operate more profitably in these soft market conditions," added Deuster.