STOCKHOLM -- NOTE AB, a top 50 EMS provider, will lay off 100 workers, mostly in Sweden, in response to decreased demand, the company said. The company will take fourth-quarter charges of 50 million kronors ($6.43 million) to cover the layoff costs.

The charges are expected to drop NOTE annual operating profits to just below break-even. The company said sales could be down as much as 30% in 2009.

In a statement, NOTE president and CEO Arne Forslund said, “Early in the fourth quarter, sales were progressing positively. However, market conditions for manufacturing have deteriorated noticeably, so that for the fourth quarter, we now expect sales to be down some 10% year-on-year. The volume deterioration is attributable to a rapid downturn in the manufacturing cycle, and in many cases, de-stocking by customers."

It is the second layoff by NOTE this year. Earlier, the firm cut 300 workers. He said NOTE would move also certain programs to other lower-cost sites.

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