Slow sales prompt Intermec to cut staff

  • Bryan Corliss / Herald Writer
  • Friday, November 9, 2001 9:00pm
  • Business

By Bryan Corliss

Herald Writer

Intermec plans to eliminate 7 percent to 10 percent of its workforce by the end of the year.

That will equate to between 50 and 75 people at its Everett facility. "We don’t have a total figure," said Lois Fenimore, a spokeswoman at the plant.

The job cuts started at the end of October and will be concluded by year’s end, she said. Employees will receive severance packages that are based on time spent with the company.

The layoffs are the result of a general slowdown in the economy that only was made worse by the Sept. 11 terrorist attacks, Fenimore said.

The company’s third-quarter revenues were down 12 percent from last year’s total, according to its parent company, Unova. Intermec showed an operating loss of $10.9 million on revenue of $143 million.

Managers now are trying to account for the slowing sales as they budget for next year, Fenimore said. "We’re trying to take costs out wherever we can."

It’s impossible to say whether Intermec would have instituted layoffs this year if the Sept. 11 attacks hadn’t happened, Fenimore added. "We weren’t really in our budgeting process at that date."

Intermec will not eliminate any divisions or functions during the cutback, she said. Some departments will be cut more sharply than others.

Intermec was a pioneer in developing bar codes and scanners. It also develops and manufactures a range of portable and wireless computer products that are used by different companies to help them manage inventory and to improve sales and service in the field.

You can call Herald Writer Bryan Corliss at 425-339-3454

or send e-mail to corliss@heraldnet.com.

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