Electronics Production | December 09, 2008
Molex cuts 4Q forecast and announce staff reductions
Molex has cautioned that its revenue for the 4Q/2008 will be below the range of estimates provided in its outlook on October 28, 2008. The management is also planning to reduce its workforce.
Demand within the company’s markets has fallen since the October outlook. As a result, December quarter revenue is now expected to be in the range of $650 million to $670 million, compared with its prior outlook of $750 to $800 million. Management is lowering expenses, including headcount and related employee costs. These cost reductions are in addition to the previously announced expense controls and restructuring initiatives. However, no detail about the reduction in staff numbers - how many employees will be affected by the cost saving measures and where staff cuts will implemented - have been issued so far.