Monday January 26, 11:11 PM
Texas Instruments cuts 3,400 jobs
NEW YORK (AFP) - Texas Instruments Inc (NYSE: TXN - news) . announced on Monday it was cutting 12 percent of its global workforce, or about 3,400 jobs, as the weak economy dragged down profits.
The Dallas, Texas-based electronics and semiconductor manufacturer said the reductions would come through 1,800 layoffs and 1,600 voluntary retirements and departures and would result in charges of about 300 million dollars.
Combined with a restructuring of the company's wireless business announced in October, the reductions would result in annualized savings of 700 million dollars, it said.
"We are realigning our expenses with a global economy that continues to weaken," chief executive Rich Templeton said. "By reducing expenses now, we keep TI financially strong and able to invest for future growth.
"We are not counting on a near-term economic rebound for improvement," he added in statement.
Texas Instruments said net profit fell 27 percent to 1.92 billion dollars in 2008 compared with the previous year.
In the fourth quarter, net profit fell 86 percent to 107 million dollars, dragged down by 254 million dollars in restructuring costs.
"As the year progressed and the global economy weakened, the decline in TI revenue accelerated and broadened to the extent that all segments declined from the year-ago quarter in the final quarter of the year," the company said.
Texas Instruments forecast revenue of between 1.62 billion dollars and 2.12 billion dollars in the current quarter, down from 2.49 billion dollars in the fourth quarter.
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