Agilent Technologies Inc. shares climbed more than 5% Thursday after the measurement-tools maker said it would cut 2,700 jobs in response to a sharp decline in product demand caused by the worldwide economic slowdown.
Santa Clara, Calif.,-based Agilent (A) will also temporarily suspend its share-buyback program until the end of its 2009 fiscal year.
Agilent shares rose 79 cents to $16.75 after the company made the announcement that it would cut approximately 14% of its workforce of almost 14,000 employees.
In a statement, Chief Executive Bill Sullivan said that "business remains severely depressed, and there are no prospects for a meaningful recovery in the foreseeable future."
As a result, the company will slash $300 million in costs from its electronic- measurement segment in order to reach a goal of 12% operating margins and a 21% return on investment capital for the division.
Friday, March 27, 2009
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