KLA-Tencor said it would cut its workforce by 15 percent, or around 900 jobs, as it moves to weather the economic downturn.

TiVo said in a regulatory filing that it will cut an unspecified number of positions in a move to reduce expenses. A company spokeswoman declined to comment further.

TiVo will take a pre-tax charge of $1 million in the fourth quarter related to its headcount reduction.

KLA is facing the worst demand environment its seen since 2000, coupled with a global economic crisis that is making credit hard to come by for some customers, said spokeswoman Meggan Powers.

"Its definitely one of the most difficult times this industry has seen."

KLA-Tencor said the layoffs and other cost-cutting measures are part of an effort to lower its operating expense run rate by $165 million to $175 million by the end of fiscal 2009.

The company expects to take an initial charge of $15 million to $20 million related to the job cuts, and expects to take additional charges throughout 2009.

KLA-Tencor is the world's largest supplier of equipment used to make semiconductor chips.

The pace of layoffs in Silicon Valley has picked up in the past week as the global economic outlook deteriorates. Intel Corp's fourth-quarter revenue warning only added to the gloom.

One of KLA-Tencorp's main competitors, Applied Materials Inc, announced last week it would cut 1,800 jobs, its second round of layoffs this year.

Shares of Milpitas, Calif.-based KLA-Tencorp closed down 56 cents, or 3 percent, at $16.81, and rose 3 percent to $17.37 in extended trading.

Shares of Alviso, Calif.-based TiVo closed at $6.07, up 6 cents.

(Reporting by Gabriel Madway)