Intevac Reduces Workforce

Intevac, Inc. announced a global cost reduction plan which includes reducing its workforce by approximately 13% worldwide.

The workforce reduction will be substantially completed in the fiscal first quarter ending March 30, 2013.

This announcement is part of the company’s strategy to reduce its total expenditures by approximately $12 to $14 million on an annual basis.

"This reduction in workforce is very difficult, but necessary to better balance the level of investment in new products with the slowdown we presently face in our equipment business," said Norm Pond, chairman and CEO of Intevac. "The implementation of this plan will significantly lower our expenditures as well as our cash burn going forward."

The company expects to record a restructuring charge in the first quarter of approximately $500,000, primarily related to employee severance. The impact of this charge is not expected to materially change our previously provided guidance for the first quarter.