Thursday, February 5, 2009

Cohu Cuts Back Headcount, Cuts Pay

Poway-based Cohu, a supplier of equipment for the semiconductor industry, announced Thursday that it is reducing headcount, cutting pay, suspending its matching 401(k) contributions, reducing work hours, and forcing mandatory time off, as the firm sees "extremely difficult" business conditions. Cohu, which detailed the cost cutting moves as part of its quarterly results, said its sales dropped to $41.4M for its fourth quarter ended December 27, down from $57.1M in the similar quarter in 2007. Exact number of employees affected by the moves were not disclosed. The firm said that the global financial crisis has results in "sharply reduced demand" for semiconductors, which has affected the firm's customers.