8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM8-K

CURRENT REPORT

Pursuant to Section13 OR 15(d)of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 16, 2009

MTS SYSTEMS CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota	0-2382	41-0908057
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
14000 Technology Drive
Eden Prairie, Minnesota		55344
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:  (952) 937-4000

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.05.Costs Associated with Exit or Disposal Activities.

On July 16, 2009, MTS Systems Corporation (the “Company”) announced a workforce reduction in response to the continued weakness in industrial capital spending.

The Company-wide workforce reduction impacts approximately 65 positions and includes both immediate actions as well as those taken in April 2009. As a result, the Company will record a pre-tax charge of $1.2 million for severance costs in the third quarter of fiscal 2009, ended June 27, 2009. A majority of this charge will result in future cash expenditures.

Combined with the actions announced today, the Company 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 $15-20 million for fiscal 2010.

A copy of the press release announcing this action is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01.Exhibits.

(d)   Exhibits.

ExhibitNo.	Description of Exhibit
99.1	Press Release dated July 16, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MTS SYSTEMS CORPORATION
	(Registrant)
Date: July 17, 2009	By:	/s/ SUSAN E. KNIGHT
		Susan E. Knight
		Vice President and Chief Financial Officer

MTS SYSTEMS CORPORATION

FORM8-K CURRENT REPORT

INDEX TO EXHIBITS

ExhibitNo.	Description of Exhibit
99.1	Press Release dated July 16, 2009.

EX-99.1

Exhibit 99.1

MTS Systems Corporation 14000 Technology Drive Eden Prairie, MN 55344-2290 Telephone 952-937-4000 Fax 952-937-4515

News Release

FOR IMMEDIATE RELEASE
July 16, 2009 For More Information Contact: Susan Knight, Chief Financial Officer
(952) 937-4000

MTS Announces Additional Workforce Reduction

Eden Prairie, Minn., July 16, 2009 – MTS Systems Corporation (NASDAQ: MTSC) today announced an additional reduction in its workforce in response to the continued weakness in industrial capital spending. The capacity reduction impacts approximately 65 positions and includes both immediate actions as well as those taken in April 2009. 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 the actions announced today, the Company 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 $15-20 million for fiscal 2010.

“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,” said Laura B. Hamilton, chair and chief executive officer. “With lower backlog and a cautious growth outlook, we believe it is appropriate to further reduce the Company’s cost structure to more closely align with today’s economic reality. We are disappointed to lay off more employees but we believe it is a necessary step as we adjust the size of the Company to achieve long term success. We will continue to closely monitor market conditions so we can respond to changes in the capital-spending environment.”

The financial results for the third quarter will be released on July 22, 2009.

About MTS Systems Corporation

MTS Systems Corporation is a leading global supplier of test systems and industrial position sensors. The Company’s testing hardware and software solutions help customers accelerate and improve their design, development, and manufacturing processes and are used for determining the mechanical behavior of materials, products, and structures. MTS’ high-performance position sensors provide controls for a variety of industrial and vehicular applications. MTS had 1,660 employees and revenue of $461 million for the fiscal year ended September 27, 2008. Additional information on MTS can be found on the worldwide web at http://www.mts.com.

This release contains “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties, as well as assumptions, that could cause actual results to differ materially from historical results and those presently anticipated or projected. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to the factors discussed above, other important risk factors are delineated in the Company’s most recent SEC Form 10-Q and 10-K filings.

###