Texas Instruments has announced plans to reduce its workforce by 1,700 employees. The firm is restructuring in order to cut costs, and it plans to stop developing new processors for the mobile device market.
Nathan Eddy from eWeek reported, “Technology giant Texas Instruments on Nov. 14 announced plans to eliminate 1,700 jobs worldwide as the company seeks to reduce costs and focus investments in its wireless business on other markets, such as home appliances and cars, that offer greater potential for growth. The 1,700 jobs represent roughly 5 percent of the company’s workforce of 35,000.”
The Wall Street Journal’s Kristin Jones noted, “The Dallas company said it expects restructuring charges of $325 million, mostly in the fourth quarter, in connection with the job cuts. It expects annual savings of roughly $450 million by the end of 2013.”
Sinead Carew and Noel Randewich from Reuters added, “Texas Instruments said in September it would halt costly investments in the increasingly competitive smartphone and tablet chip business, leading Wall Street to speculate that part of the company’s processor unit, called OMAP, could be sold.”
TechCrunch’s Natasha Lomas quoted TI’s Greg Delagi,who said, “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.” He added, “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.”