In its press release announcing the earnings revision, Varian said it had cut its operating expenses from $59.9 million in the beginning of October to $50 million currently. The company said it expected to trim costs to $45.5 million by the beginning of April, posing the possibility of more layoffs to come.

Halliday said another week-long plant shutdown was likely in February, during the week Massachusetts public schools go on vacation. The shutdowns are a way for the company to reduce the size and frequency of layoffs, he said.

"My sense is that 2009 is going to be a slow year," Halliday said. "We will probably have more shutdowns to protect jobs."

While the downsizing of the company has reduced operating expenses, the restructuring itself has cost the company around $5 million in one-time expenses from costs such as severance payments, health care costs, rental agreements, writing off inventory and closing facilities.

The windmill project includes building two 30-story turbines at the Blackburn plant that would be the tallest in Massachusetts, and are planned to cut Varian's energy costs. The windmills were granted permits from the city in October 2007 and at that time it was estimated that the project could be built in 16 months.

Rick Johnson, Varian's director of facilities, said yesterday that the project was "on hold" until the economy improves or the cost of the turbine equipment drops.

Despite the worse-than-expected earnings news, Varian officials have maintained that the company's strong share of its market and cash reserves put it in good position to weather the downturn and make money when the economy rebounds.

Halliday said the company was still optimistic about the windmill project.

"We are trying to protect jobs, not planning much for bonuses, investing in research and development and trying to grow the company," Halliday said.

Patrick Anderson can be reached at panderson@gloucestertimes.com.

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