As part of a cost-cutting effort, Agilent Technologies Inc. of Palo Alto, CA has announced that it will reduce its workforce by approximately 4,000 people, or about nine per cent, by the middle of nex...
November 1, 2001
As part of a cost-cutting effort, Agilent Technologies Inc. of Palo Alto, CA has announced that it will reduce its workforce by approximately 4,000 people, or about nine per cent, by the middle of next year.
“Based on our outlook earlier in the year, we implemented a variety of aggressive cost-control measures — including a temporary 10 per cent pay cut — to try to avoid layoffs,” said Ned Barnholt, Agilent president and CEO. “The measures to date have had a positive impact, but the business environment in our key industries continued to deteriorate this quarter. And the outlook going forward is for a slow and gradual recovery. We are now taking additional actions to bring the size of our workforce more in line with anticipated business levels.”
Barnholt called the current picture the worst industry downturn he has seen in his 34 years with the company, and noted that “extraordinary business conditions, unfortunately, require unusual actions.”
The workforce reductions will occur in many geographies and business organizations. Agilent expects to incur restructuring expenses of approximately US$200 million to reflect the impact of severance packages and related costs associated with the workforce reductions. The workforce reductions are expected to result in approximately US$500 million in annualized savings.