updated 07:00 pm EST, Wed November 14, 2012
Continued restructuring, refocusing will save $450 million annually
Chip manufacturer Texas Instruments is slashing 1,700 jobs in an effort to cut costs as it migrates its business model away from smartphone chips. TI said it expects to take a charge of about $325 million related to the job cuts and other associated cost reduction methods in the current quarter. Previously-announced fourth quarter predictions did not include these costs.
TI expects to realize $450 million in savings by the end of 2013 from the reduction-in-force of five percent of its global worker pool. In September, the chipmaker said it would stop investments in its OMAP chip program, and attempts to sell it in a larger market such as car manufacturers or digital photography. Its wireless communication chipset has also lost ground to Qualcomm and other manufacturers.
Shares in the manufacturer rose to $29 in after-hours trading after closing two percent down on the news during the regular trading day. Amazon is reportedly a key suitor for TI's mobile processor business.