Analogic Corp. is laying off 85 workers, or about 6 percent of its workforce, and consolidating its operations in Massachusetts to save about $5 million a year.
The Peabody, Mass.-based imaging device maker said the layoffs will mean a $2.1 million charge during the fourth quarter; moving roughly half of its Copley Controls operation from Canton, Mass., to Peabody will mean an additional $1 million Q4 charge.
President and CEO Jim Green said the moves are aimed at improving operational effectiveness and to fund “the ongoing investments needed to position Analogic for future growth.”
Meanwhile, shares of Analogic tumbled by more than 7 percent on Wall Street as the company’s stock rating was downgraded by Stifel Nicolaus & Co. from “hold” to “buy.”
Analyst Stephen Levenson of Stifel said the company’s revenue has generally been below expectations and that soft sales in the imaging equipment market would continue to hamper Analogic, according to published reports.