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Eden Prairie-based MTS is eliminating 150 jobs
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MTS Systems Corp., which supplies test systems and industrial sensors, said Tuesday that it is cutting 150 jobs, or 6 percent of its workforce.
The Eden Prairie-based company said late Tuesday the reductions would be achieved through layoffs, attrition and canceling open positions.
"The worldwide economic decline demands that we re-evaluate the size of our operations to maintain the strength of our company and appropriately prepare MTS for growth in the years ahead," CEO Laura Hamilton said in a statement after the stock market closed.
Last month, MTS reported net income of $9.8 million on revenue of $116.6 million for the quarter that ended Dec. 27. For the 2008 fiscal year that ended in late September, MTS had net income of $49.2 million on revenue of $461 million.
MTS has many well-known customers in its test hardware and software business, such as Ford, General Motors and other automotive companies that have been hit hard by the recession. It also sells its products to aerospace customers, including Airbus and Boeing, and medical companies, including Medtronic and Boston Scientific. Key customers in its sensors business include Caterpillar and Siemens.
While the recession triggered the job cuts, Hamilton said that MTS is well-positioned for the future based on its "geographic and end-market diversification, our technical and applications expertise and our strategic focus."
MTS plans to take a pretax charge of $2.5 million to $3.5 million related to the workforce reductions in the second fiscal quarter that ends next month.
Liz Fedor • 612-673-7709
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