Computer maker AST Research Inc. will cut more than 1,000 jobs - a quarter of its worldwide work force - because of first-quarter losses of $110 million, the company said Monday.
The move comes a week after AST agreed to be acquired by South Korea’s Samsung Group, which will pay about $477 million for the 51 percent of AST it doesn’t already own.
“Our turnaround efforts require more aggressive actions than in the past due to lower than anticipated performance during the first quarter of fiscal year 1997,” AST President Y.S. Kim said.
AST said it will take a second-quarter charge of about $12 million for costs related to the job cuts. AST currently employs about 4,100 workers in the United States, Europe, Asia and the Pacific.
The cuts could come as early as this week, although it was not immediately known which areas would be affected, AST spokesman Emory Epperson said.
AST has struggled in recent years amid manufacturing problems and management woes. Its biggest mistake was in failing to quickly introduce machines based on the Pentium microprocessor.
AST said Monday it lost $1.90 a share for the quarter ended March 29, vs. a loss of $115.8 million, or $2.59 per share, a year ago. Revenue fell to $347 million from $530 million a year ago.
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