Texas Instruments to cut 1,100 jobs globally

22 Jan 2014

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Texas Instruments Inc, the largest analog-chip maker,   yesterday said that it plans to cut 1,100 jobs in the US, India and Japan, as part of restructuring to save $130 million by the end of 2014.

The job cuts come even though the company yesterday reported a profit of $511 million for the fourth quarter, compared with $264 million a year earlier, while revenue rose 2 per cent to $3.03 billion compared to $2.97 billion a year earlier.

Texas Instruments will cut 3 per cent of its global workforce as it cuts costs in its embedded processing division and in Japan where investments in markets do not offer ''sustainable growth and returns.''

The Dallas-based company said that it will take restructuring charges of about $80 million, of which $49 million was included in the fourth quarter of 2013 and about $30 million  in the first quarter of 2014. 

The company expects to achieve annualised savings of about $130 million by the end of 2014.

The company said that it is not exiting any markets or discontinuing any existing products but will reduce investments in markets that do not offer sustainable growth and returns. 

Last November Texas Instruments said it will eliminate about 1,700 jobs worldwide, in order to cut costs as it shifts away from the wireless mobile market to focus on its embedded wireless business.

Texas Instruments, which was the first to introduce the first single-chip LPC speech synthesiser in 1978, has shifted its focus from wireless sector to industrial and automotive segment.

It has also moved away from manufacturing and investing in chips for smartphones and tablets, after its customers started developing their own custom chips.

Until early last year, Texas Instruments wireless business produced wireless solutions for products such as smartphones and e-books, tablets, consumer electronics and other portable devices.

Wireless communications had been a primary focus for the company with around 50 per cent of all cellular phones sold worldwide containing its chips.

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