Agilent Technologies Inc. (A) is experiencing the “most severe global downturn” in its history, so the maker of scientific instruments announced a major restructuring of its Electronic Measurement businesses today.

This restructuring will entail a workforce reduction of 2,700 employees and have a cash cost of about $160 million.

Investors must have agreed with the company’s move, as shares are up almost 7% today.

A stated that fiscal 2009 revenue in its Electronic Measurement Segment is expected to drop about 30% from 2008, which would be the lowest level in its 10-year history. Furthermore, revenue in the Semiconductor & Board Test Segment could be down more than 50% from last year.

President and CEO Bill Sullivan was very frank in his assessment.

“Business remains severely depressed, and there are no prospects for a meaningful recovery in the foreseeable future. Therefore, we have no choice but to resize our electronic measurement businesses for the realities of the marketplace,” he said.

Specifically, A will reduce costs in its Electronic Measurement Segment by an annualized $300 million over the next 4 quarters. It will also reduce annual costs in its Semiconductor & Board Test Segment by an additional $10 million.

A is a Zacks #5 Rank stock.

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