Texas Instruments to cut 1,100 jobs in restructuring
Texas Instruments Inc plans to cut 1,100 jobs worldwide as part of a corporate restructuring intended to help it save $130 million by the end of 2014.
The U.S. chipmaker, which in 2012 announced it would lay off 1,700 people as it wound down its mobile processor business, said on Tuesday it wanted to reduce expenses in its embedded-processing division and in Japan.
"Technology markets mature from time to time and you have to rebalance where you spend your money," Chief Financial Officer Kevin March said in an interview. "In the case of Japan, the size of market there has been declining."
Texas Instruments took a $49 million charge in the fourth quarter, followed by $30 million in the first.
The company, which has gradually withdrawn from an intensely competitive mobile phone arena to focus on supplying chips for more lucrative markets like cars and home appliances, posted fourth-quarter revenue above expectations despite a muted recovery in demand.
Revenue rose to $3.03 billion from $2.98 billion in the year-ago quarter. Analysts on average had expected $2.987 billion, according to Thomson Reuters I/B/E/S.
Shares of TI fell 1.59 percent in extended trade after closing up 0.92 percent at $43.85 on Nasdaq.