The scientific instruments maker Varian is bringing out the budget axe with plans to chop 320 full-time and temp workers and shutter some of its facilities. Varian is also freezing salaries and implementing restrictions on new hires and spending. The company made the moves as it announced preliminary first quarter earnings of 50 to 54 cents, well below the Street's expectations of 63 cents a share.
"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 development and maintaining our high standard of customer service and support," said CEO Garry W. Rogerson.
"Sales were below expectations in the first quarter primarily due to lower revenues from research products (in particular NMR and imaging systems)," the company said. "Despite order weakness late in the quarter, in particular for certain vacuum and analytical products, total company orders exceeded sales for the quarter."
The Palo Alto, CA-based Varian employs some 3,900 workers worldwide and supplies scientific instruments and vacuum technologies to life sciences companies. The company didn't specify exactly who was being terminated or which facilities would be closed.
- read Varian's release on the restructuring
- read the release on sales