LOS ANGELES, Dec 17 (Reuters) - Agilent Technologies Inc (A.N) on Wednesday said it would implement temporary global pay cuts and lay off 300 temporary workers and 500 regular employees in units that have been severely hit by the economic downturn.
The company, which makes electronics testing gear, said it would record a $55 million pre-tax restructuring charges, mainly related to employee severance costs.
Agilent said it hoped to save $65 million in annual operating expenses as a result of the restructuring plan and the temporary worker cuts.
The pay reduction plan, which could include equivalent unpaid time off, was expected to begin on Jan. 1 and to save about $100 million annually.
The timing and scope of the global workforce cuts would vary by location but would be largely completed by May 31, 2009, the company said. The remainder of job cuts were expected to be completed by October 31, 2009.
The company said it began communicating the plan’s details to its employees on Monday.
Agilent cut its quarterly earnings forecast on Dec. 9 and warned for a second time in a month that it would not meet Wall Street targets because of deteriorating economic conditions. (Reporting by Gina Keating)