17 Jun 2002
Canadian laser systems manufacturer GSI Lumonics axes a further 10% of its workforce as financial woes mount.
GSI Lumonics, the Ontario-based manufacturer of automated laser systems and precision optics, has said that it will cut 10% of its workforce. The move comes on top of job cuts totalling 30% already made this year.
The cuts are in response to third-quarter results showing a 58% drop in revenues compared to the same period last year, from USD 97.6 million to USD 41.3 million. Total revenue for 2001 is currently 26% down on the 2000 figure.
Sales for the forthcoming fourth quarter are expected to be weak, in a period which is traditionally a strong one for the company. Forward orders are currently just one-third of the figure at this time last year.
Overall, GSI Lumonics made a loss of USD 8.5 million in the third quarter. The slump in orders from the depressed semiconductor and electronics sectors accounts for much of the drop in revenue, with company figures revealing a USD 32.8 million fall in these two sectors compared with last year.
Company president and chief executive Charles Winston said that although the near-term outlook for the company is uncertain, he believes the company is well-positioned to ride out the dip, and that it would continue to focus on new product development.
Operating losses are expected to continue into the fourth quarter, and further company restructuring will see consolidation of its customer services base in Farmington Hills, Michigan, US. The scanning components and medical instruments group will be consolidated to form the new components products group.