FormFactor to Cut Workforce by 22%

Livermore, Calif. -- Chip testing equipment maker FormFactor (FORM Quote) said Wednesday it will cut its work force by 22 percent and take $8 million in charges related to a reorganization and cost-cutting plan.

A message was left with the Livermore, Calif.-based company seeking details.

In a statement, Chief Executive Mario Ruscev cited a "rapid slowdown" in customer spending, "which has driven significant volatility in our forecasts."

FormFactor last month cut its fourth-quarter profit and sales outlook, citing weakening demand for its memory chip. The company said its earnings per share, operating expenses and gross margins also will fall below the earlier guidance, but did not provide specific estimates.

Analysts project a loss of 45 cents per share.

The company will report results for its fourth quarter Jan. 28.

In after hours trading Tuesday, shares fell 18 cents, or about 1%, to $14.50.