Texas Instruments To Slash 1700 Jobs
Texas Instruments (TI) has confirmed it will reduce costs in its wireless chip manufacturing and invest the savings into embedded markets to increase potential for sustainable growth.
The cost reductions are expected to include 1,700 job cuts worldwide.
TI previously outlined intentions to focus its OMAP processors and wireless connectivity solutions on a broader set of embedded applications with long life cycles. This is largely because large customers, such as Qualcomm and Broadcom are increasingly developing their own custom chips for the mobile market and don't need TI to make as many chips for them as previously..
What's more, moving to the embedded sector will require fewer resources and less investment.
"We have a great opportunity to reshape our OMAP processor and wireless connectivity product lines to concentrate on embedded markets. Momentum is already building with new embedded applications and a broad set of customers, and we are accelerating our efforts in these areas," says Greg Delagi, senior vice president of Embedded Processing.
"These job reductions are something we do with a heavy heart because they impact people we care deeply about. We will work closely with all employees affected by these changes to provide a range of assistance related to compensation, benefits and job search."
As a result of these actions, the company expects annualised savings of about $450 million by the end of 2013. Total charges will be about $325 million, most of which will be accounted for in the current quarter. TI's fourth-quarter outlook, published on October 22nd, did not take into account these restructuring charges.
