Agilent To Cut 450 Jobs
PALO ALTO, Calif. (AP) _ Agilent Technologies is cutting cut 450 jobs, or about 9 percent, of the 5,000 people employed in its healthcare products subsidiary as it seeks to streamline and consolidate manufacturing facilities across the globe.
The Palo Alto, Calif.-based industrial instrument manufacturer plans to cut about 200 contract employees from the payroll and accelerate programs to streamline manufacturing operations, affecting facilities in Andover, Mass.; Qingdao, China; and Boeblingen, Germany.
Agilent chief executive Ned Barnholt said Monday in a statement the moves were necessary to return the unit to profitability. Agilent late last month warned Wall Street its upcoming third-quarter profit would be lower than expected.
The company said last quarter it was ``disappointed″ in the healthcare products business. Orders in Agilent’s healthcare unit during the latest second quarter fell 8 percent to $349 million. Agilent said that factors slowing capital purchasing by its hospital customers include accelerating purchases in 1999 to avoid possible Y2K issues and federal budgetary pressures.
``We don’t intend to wait for market conditions to improve before implementing our plans,″ Barnholt said. `We’re firmly committed to strengthening this business and are confident that today’s actions will help get HSG back on track.″
U.S. workforce layoffs were expected to be completed by Oct. 31; Agilent said it expected a one-time charge of $25 million to complete the global job cuts but would see savings of $80 million annually beginning in 2001.
With approximately 43,000 employees serving customers in more than 120 countries, Agilent Technologies is the spinoff of Hewlett-Packard Co. that design and manufacture test, measurement and monitoring instruments, systems and solutions, and semiconductor and optical components.
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