Texas Instruments Inc. (NASDAQ: TXN), elbowed out of much of the mobile and consumer electronics chip industry by Samsung, ARM and Qualcomm Inc. (NASDAQ: QCOM), fired 1,700 people today, as the demand for much of its product lines continue to soften. At just above $29, TI shares sit little above their 52-week low.
National Employee Moral Day came to TI as it disclosed:
it will reduce costs and focus investments in its Wireless business on embedded markets with greater potential for sustainable growth. Cost reductions include the elimination of about 1,700 jobs 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, instead of its historical focus on the mobile market where large customers are increasingly developing their own custom chips. These changes require fewer resources and less investment.
As a result of these actions, the company expects annualized 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 22, did not comprehend
these restructuring charges.
Douglas A. McIntyre
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
