Intermec falls 20% on job cuts, lowered Q2 projections

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Intermec Inc. (NYSE:IN) is down more than 20% today after the technology security provider announced plans to eliminate 260 jobs. Intermec also lowered its revenue projections for the quarter ended June 29 to $216 million to $218 million, versus previous estimates of $227 million to $232 million.

The Everett, Wash.-based company said the job cuts are the result of its strategy to improve margins through streamlining the company.

“Our global supply chain strategy is intended to drive productivity, efficiency and gross margin expansion,” said Patrick Byrne, president and CEO, in a statement. “This plan should help us optimize our manufacturing, assembly and service operations while providing meaningful reductions to our cost structure.”

In today’s trading, Intermec is trading at $16, down $4.22 from Wednesday’s close. Trading volume has soared to nearly 2 million shares, well above the average of about 300,000 shares.

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