Texas Instruments cuts 1700 jobs as part of strategic plan

Consistent with previously stated strategic plans, Texas Instruments has announced it will reduce costs, including the elimination of about 1700 jobs worldwide, so it can focus investments in its wireless business on embedded markets with greater potential for sustainable growth. 

TI previously outlined intentions to focus its OMAP processors and wireless connectivity solutions on a broader set of embedded applications with long life cycles, instead of its historical focus on the mobile market where large customers are increasingly developing their own custom chips. These changes require fewer resources and less investment.

“We have a great opportunity to reshape our OMAP processor and wireless connectivity product lines to concentrate on embedded markets. Momentum is already building with new embedded applications and a broad set of customers, and we are accelerating our efforts in these areas,” said Greg Delagi, senior vice president of Embedded Processing. “These job reductions are something we do with a heavy heart because they impact people we care deeply about. We will work closely with all employees affected by these changes to provide a range of assistance related to compensation, benefits and job search.”

As a result of these actions, the company expects annualised savings of about $450 million by the end of 2013. Total charges will be about $325 million, most of which will be accounted for in the current quarter. TI’s fourth-quarter outlook, published on 22 October, did not comprehend these restructuring charges.