Citing a severe business environment, Advantest Corp. (ATE), a maker of semiconductor and component test system products, Wednesday said it was eliminating 1200 positions. The company has also decided to reduce remuneration of directors and officers, by 50%-60%, while salary of management-level employees will be reduced by 5%-20%. Payment of bonuses will cease.
The employee reduction, which will result in a workforce of 3,400 by the end of March, will be achieved through non-renewal of contracts of part-time employees and voluntary retirement of full-time employees.
The company expects that these restructuring initiatives will incur 25 billion yen in expenses and anticipates that fixed costs will be reduced by about 25 billion yen per year after the current fiscal period.
ATE closed Tuesday's regular trade at $14.64, up $1.10 or 8.10%, on 69,387 shares.
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