Novellus to Cut Jobs, CEO Pay

Novellus Systems Inc. CEO Richard Hill announced plans Tuesday to cut 10 percent of its workforce and reduce his own salary by 50 percent due to weakening demand from Asia.

The San Diego, Calif.-based chip tools maker said it will cut its 3,500-strong workforce through attrition and layoffs. Novellus highlighted weakening demand from Korean memory chipmakers as the cause of its recent woes.

"Visibility is extremely limited at this time, [but] Novellus expects an incremental reduction of at least ten percent in bookings, shipments and revenue for the fourth quarter," said Novellus via its web site, according to MarketWatch.

Hill also warned that the company's fourth quarter expectations would be far below previously forecast, adding that Novellus had acted rapidly to cut expenses.

"We were quick to respond to weakening business conditions early in 2008," said Chief Executive Rick Hill, according to the Wall Street Journal. "Unfortunately, the current environment warrants deeper cost reductions."

Hill announced that his salary would be reduced by 50 percent and added that he would not receive a bonus, according to MarketWatch. Additionally, Hill will not receive stock in 2009.

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