Cognex announces reduction in work force

OCTOBER 4--Cognex Corp. (Natick, MA; www.cognex.com) is eliminating approximately 85 positions at its Modular Vision Systems Division, including approximately 60 employees, as well as approximately 25 contractors and open requisitions. The work-force reduction is in response to the severe downturn in the semiconductor and electronics industries and is expected to reduce expenses by approximately $6 million on an annualized basis. Approximately 30 positions were eliminated at the company's headquarters, and the remaining positions were at other locations worldwide.

"This is the company's first significant reduction in force since 1985 and has been an especially difficult one for us because these are all hardworking, experienced, and dedicated employees," said Robert J. Shillman, Cognex president, chief executive officer, and chairman. "Unfortunately, the depth and duration of the high-tech slowdown, coupled with a very uncertain economic outlook overall, has made it necessary to take this action. We believe that a business recovery is not likely to occur in the near future, and, in view of that, we currently need fewer people to meet our customers' needs."