PALO ALTO, Calif.-Watkins-Johnson Co. said weak orders for semiconductor capital equipment is the primary reason for a planned restructuring of its operations that would reduce its global work force by about 20 percent.
Watkins-Johnson expects its third-quarter loss, net of taxes, to be approximately $50 million to $55 million, including charges for the downsizing and restructuring. The company said it is sizing its Semiconductor Equipment Group to match a reduced level of forecasted revenue.
“The telecommunications industry is performing well,” said W. Keith Kennedy, Watkins-Johnson’s chief executive officer. “We are optimistic for the future of the refocused Wireless Communications business segment.”
