CHIPMAKER Texas Instruments will slash 1,700 jobs as it focuses on its wireless and embedded businesses.
Texas Instruments has already talked about its desire to offload parts of its chip business and now the firm has embarked on wider cost saving tactics. The company said it plans to cut 1,700 jobs worldwide.
According to Texas Instruments it wants to focus on its OMAP system-on-chip (SoC) business, which has most recently provided the processor chip in Amazon's Kindle Fire HD. The firm also said it will put more attention on wireless and embedded products where life-cycles are longer, giving it more time to recoup research and development investments.
Greg Delagi, SVP of Embedded Processing at Texas Instruments 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. 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."
Texas Instruments said that the job cuts will realise annual cost reductions of $450m by the end of 2013, though it will cost the firm $325m, most of which will appear in its third quarter financial results. µ