Chipmaker Texas Instruments announced plans to lay off 1,700 employees, nearly 5 percent of its global workforce, as part of its cost-cutting efforts.
"Consistent with previously stated strategic plans, Texas Instruments announced today it will reduce costs and focus investments in its Wireless business on embedded markets with greater potential for sustainable growth. Cost reductions include the elimination of about 1,700 jobs worldwide," the company said in a statement.
Company's new cost cutting drive aims to reduce expenses by about $450 million by the end of 2013. As per its previously announced restructuring initiative, Texas Instruments will shift its focus from making smartphone application chips to fast-growing embedded device market. As smartphone giants such as Apple and Samsung began designing their own chips for their devices rather than buying them from suppliers like TI, the Dallas-based company decided to shift its strategy to OMAP processors and wireless connectivity solutions on a broader set of embedded applications with long life cycles.
"These job reductions are something we do with a heavy heart because they impact people we care deeply about," Greg Delagi, senior vice president of Embedded Processing, said. "We will work closely with all employees affected by these changes to provide a range of assistance related to compensation, benefits and job search."
