Other cost-reduction initiatives include temporary site shutdowns, a hiring freeze, the elimination of bonus payments, and strict controls over all discretionary spending.
The company plans factory shutdowns for four to six weeks in the first and second quarter of 2009, three weeks of unpaid leave for senior executives, and two weeks of unpaid leave or a four-day work week for other employees.
The company expects the initiatives to reduce total fixed costs by approximately $40m to $50m a quarter, of which approximately $10m to $15m will be from temporary actions. It said the moves are expected to reduce to approximately $340m the revenue required for quarterly cash breakeven.
The company also revised its fourth quarter 2008 revenue outlook to $480m to $490m from $500m to $550m.