Cognex Cuts 85 Jobs In Bid For Profitability
Cognex Corp., the Natick-based maker of machine vision sensors, said it would cut 85 jobs and reduce executive salaries as part of an effort to save $15 million.
The company also said it would cut back on the amount of leased space it occupies, leave unfilled positions vacant, require mandatory shut-down days, reduce the company's contribution to employee 401(k) plans and decrease discretionary spending.
As a result of the cuts, the company expects to take a $4 million pre-tax charge in the second quarter.
It became apparent to the company in 2008 that the recession would have a negative effect on business and it cut expenses in anticipation of decreased revenues in 2009. However, "conditions deteriorated beyond what we had anticipated," said Robert J. Shillman, the company's chairman and CEO.
Shillman said the company currently sees "no sign of improvement in the near term."
While the cuts Cognex has made are substantial, Shillman said that unless business conditions improve significantly and demand for the company's products picks up, the cuts "are unlikely to be sufficient to guarantee our profitability for 2009."
Cognex makes vision sensors used to automate manufacturing. The company has offices around the United States, Asia, Europe and Latin America.
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