Life Technologies Inc., Maryland's largest biotechnology firm, announced yesterday that it will lay off 40 of 500 employees and is taking a $1.2 million pretax charge against its fourth-quarter earnings.
Joseph Stokes, a vice president with the Gaithersburg-based company, said the cuts were made because the company's sales growth over the last 12 to 18 months had fallen short of projections, coming in at 15 percent rather than the expected 20 percent, because of the recession.
Most of the employees laid off were in administrative positions in Gaithersburg, Mr. Stokes said.
The charge against Life Technologies' fourth-quarter earnings won't exceed 5 cents a share and will go toward severance packages and other reorganization costs, Mr. Stokes added.
Life Technologies, which sells products used to manufacture pharmaceuticals, had revenue of $151 million last year.
For its third quarter, which ended Sept. 30, the company had net income of $2.8 million, a 20.5 percent drop from the third quarter of 1990. Revenues were $41 million, an increase of 7.5 percent.