Corning Inc, the largest maker of liquid crystal display glass in the world, will cut 3,500 jobs or 13 percent of its workforce as demand for glass used in flat-panel television screens and computers declined.
Corning, which also makes specialty ceramics, said it plans to save from $150 million to $200 million a year with the layoffs.
This reduction, while painful for us in the fourth quarter, moves us closer to the day that glass demand rebounds, said Corning chief financial officer and chairman James B. Flaws.
Shares of Corning fell 6.53 percent or 65 cents to $9.30 each ahead of the opening of New York Stock Exchange at 8:41 a.m. EST. Tuesday.
The global economic crisis has slowed demand for liquid crystal displays. The worst slowdown has been from its customers in Taiwan, according to the company.
The group reported its earnings in the fourth quarter fell as much as 65 percent to $249 million or 16 cents per share, compared to $717 million or 45 cents per share in the previous year.
Excluding special items, it earned 13 cents a share, down 70 percent from 2007's fourth quarter. Revenue in the same period slumped 30 percent to $1.1 billion, the company announced.