PALO ALTO, CA -- Agilent will lay off 2,700 workers as part of a major restructuring of its Electronic Measurement and Test businesses in response to a sustained 30% reduction in demand.

The EM business set goals of 12% operating margin and a 21% ROIC based on annual revenues of $2.3 billion.

The company's Semiconductor and Board Test segment further restructured as well, in hopes of achieving some $10 million a year in savings. Revenue in the segment is expected to be down over 50% from last year and 65% from its peak volume.

The company will take cash charges of $160 million.

“We have been very aggressive to date in addressing the downturn in electronic measurement markets,” said Bill Sullivan, Agilent president and chief executive. “However, 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.”