July 17, 2009 (FinancialWire) — MTS Systems Corp. (NASDAQ: MTSC) said it will reduce its workforce by 65 positions in response to the continued weakness in industrial capital spending.

The reduction includes both immediate actions as well as ones taken in April. As a result, the company will record a pre-tax charge of $1.2 million for severance costs in the third quarter ended June 27, 2009.

Combined with latest actions announced, MTS Systems said it anticipates further workforce and cost reduction actions in the fourth quarter related to material sourcing and process and structure improvements. These actions will result in annual savings of $15 to $20 million for fiscal 2010, according to the company.

MTS CEO Laura B. Hamilton said, “While orders of $80 million in the third quarter showed a sequential improvement of 17 percent compared to the second quarter, they remain well below historical levels.”

The company will release its financial results for the third quarter will be released on July 22.

Eden Prairie, Minnesota-based MTS Systems is a supplier of test systems and industrial position sensors. The company’s testing hardware and software are designed to accelerate and improve design, development, and manufacturing processes and are used for determining the mechanical behavior of materials, products, and structures.

MTS had 1,660 employees and posted revenue of $461 million for the fiscal year ended September 27, 2008.

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