Published: Friday, May 1, 2009
More layoffs at Intermec
With revenue slipping, the Everett company will release 12 percent of its work force
EVERETT -- Everett-based electronics firm Intermec Inc. announced Thursday it will lay off 12 percent of its work force worldwide over the next eight months, part of a plan to pare down the company's costs in light of diminished revenue projections.
The plan for layoffs was laid out in Intermec's first-quarter earnings report, which revealed a net loss of $10.4 million between January and March of this year -- or $0.17 cents per diluted share.
The tracking technology company, a front-running pioneer of the barcode business, expects to make between $150 to $165 million in the second quarter, compared with first-quarter revenue of $163 million. Without cuts, revenue will continue to fall short of operation costs, Intermec officials said Thursday.
"Our focus going forward is to lower our break-even point while positioning the company for strong operating leverage and growth when the markets recover," Intermec CEO Patrick Byrne said in a statement.
Reducing the company's work force by 12 percent is expected to save $22 to $25 million annually.
This is the second round of layoffs in 2009 for Intermec. In January, the company announced a 7 percent cut in its work force, which resulted in about 150 jobs cut worldwide.
In 2008, the company shed 180 jobs by outsourcing manufacturing jobs in Everett and some other U.S. facilities to Asia.
A spokesman for Intermec said labor laws prohibited him from disclosing how many positions would be cut in this round of layoffs. But given past staffing rates, it's likely 12 percent of Intermec's work force would be more than 200 people.
The plan for layoffs was laid out in Intermec's first-quarter earnings report, which revealed a net loss of $10.4 million between January and March of this year -- or $0.17 cents per diluted share.
The tracking technology company, a front-running pioneer of the barcode business, expects to make between $150 to $165 million in the second quarter, compared with first-quarter revenue of $163 million. Without cuts, revenue will continue to fall short of operation costs, Intermec officials said Thursday.
"Our focus going forward is to lower our break-even point while positioning the company for strong operating leverage and growth when the markets recover," Intermec CEO Patrick Byrne said in a statement.
Reducing the company's work force by 12 percent is expected to save $22 to $25 million annually.
This is the second round of layoffs in 2009 for Intermec. In January, the company announced a 7 percent cut in its work force, which resulted in about 150 jobs cut worldwide.
In 2008, the company shed 180 jobs by outsourcing manufacturing jobs in Everett and some other U.S. facilities to Asia.
A spokesman for Intermec said labor laws prohibited him from disclosing how many positions would be cut in this round of layoffs. But given past staffing rates, it's likely 12 percent of Intermec's work force would be more than 200 people.
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