SiliconBeat

Citing a “protracted downturn” affecting the wafer fabrication equipment market due to “oversupply conditions in the memory segment” that has been “exacerbated by macro-economic conditions”, Mattson Technology Chief Executive David Dutton said Wednesday the company would eliminate about 80 positions, or about 14 percent of its global workforce as part of a “cost alignment plan” it has adopted.

About half the cuts will come from manufacturing positions, in line with the Fremont company’s plan to expand outsourcing operations for systems that are now manufactured in Germany. The company began notifying employees on Wednesday. Mattson expects the job reductions and other “cost alignment activities” will be completed by the end of its second quarter of 2009.

Mattson said the plan will result in yearly savings of about $6 million. Restructuring charges are estimated to be in the range of $4.5 million to $5.5 million, mostly for employee severance pay and “facility-optimization” costs.