Flextronicsis cutting 15% of its workforce, or 10,000 jobs, and reducing its manufacturing capacity by 20% in preparation for continued weakness in the contract manufacturing industry.

The company also said its second quarter cash earnings were $73 million, or 15 cents a share, down from $105 million, or 22 cents, a year ago but in line with expectations. Revenues rose slightly to $3.2 billion.

Flextronics said it continues to believe its "pipeline of new opportunities is robust," but said it is cutting the workforce and capacity in an effort to "to plan our operations as though no new business will come our way." The company's bottom line second quarter loss of $330 million, or 69 cents a share, reflected a $399 million charge.