EDN reported on November 4, 1998, that KLA-Tencor planned to eliminate 220 jobs worldwide—about 5% of its workforce—as part of a cost-reduction restructuring during a semiconductor downturn. The company expected a loss for the quarter ending December 31, 1998. This is a report of a historical plan, not a current layoff announcement or confirmation that all 220 cuts were completed.
What KLA-Tencor announced
According to EDN’s November 4, 1998 report, the planned reduction covered 220 positions worldwide, equivalent to about 5% of the company’s workforce. KLA-Tencor characterized the restructuring as a cost-reduction measure amid a semiconductor industry downturn.
The report describes planned job eliminations; it does not establish that the cuts were subsequently completed. It also contains no quotation from a named company official.
Why the company was restructuring
EDN linked the planned reductions to weaker business conditions and cost cutting. The report said the expected nonrecurring charge would primarily cover facility consolidation, asset write-downs, severance, and other costs associated with the layoffs.
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Financial context reported at the time
EDN said KLA-Tencor expected to report a loss for the quarter ending December 31, 1998. The same report gave the following results for the quarter ended September 30, compared with the year-earlier quarter:
| Measure | Quarter ended September 30, 1998 | Year-earlier quarter |
|---|---|---|
| Sales | $205 million | $312 million |
| Net income | $10 million | $50 million |
EDN reported that sales were down 34% year over year. These figures and the expected fourth-quarter loss are figures from its brief contemporary report, not independently verified here against company filings.
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