Agilent Implements Cost-Cutting Measures

Facing the effects of a weak economy and the California energy crisis, Agilent Technologies Inc. of Palo Alto, Calif., has announced that it will cut the salaries of its 48,000 employees by 10 percent and will institute a hiring freeze. The company hopes that the measures, which will be in effect at least through July 31, will save $70 million per quarter.

President and CEO Edward W. Barnholt said in a statement that Agilent hopes to avoid layoffs with the action. He noted that revenue for the second quarter was expected to be less than $2.9 billion because of sluggish demand and said that Agilent could not "provide meaningful guidance for the year."