Texas Instruments is axing 3,400 staff after
posting an annual 30% decrease in sales and a 95% fall in
operating profits for its fourth quarter.
"TI is making reductions in employment because demand has
continued to weaken with the slowing economy. Employment will be
reduced by 12% through 1,800 layoffs and 1,600 voluntary
retirements and departures," said Texas Instruments.
It said the cuts would cost the firm about $300m. Annualised
savings from these reductions, plus those announced in October from
the restructuring of its wireless business, will be about $700m,
after all reductions are complete in the third quarter of 2009.
"We are realigning our expenses with a global economy that
continues to weaken," said Rich Templeton, TI chairman, president
and chief executive officer. "By reducing expenses now, we keep TI
financially strong and able to invest for future growth.
"Most of the reductions will come in our internal support
functions and non-core product lines, so that a greater percentage
of the dollars we spend will go directly toward developing and
supporting analog and embedded processing products. We believe
these are the areas that will drive TI's future growth and allow us
to achieve our financial objectives."
He said the firm was not "counting on a near-term economic
rebound for improvement".