Texas Instruments sheds 1,700 staff in smartphone retreat
Internet of things needs less manpower
Texas Instruments is shedding around 5 per cent of its global workforce as the company abandons its ambitions in the smartphone arena and focuses on embedded systems.
"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," Greg Delagi, senior vice president of embedded processing, said in a statement.
"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."
The company expects to pay out around $325m in restructuring costs from the move, but reckons it will see savings of $450m per year by the end of 2013. TI's shares rose around 2 per cent on the news.
The redundancies have been expected since last month's announcement that TI would be getting out of the smartphone and fondleslab chip business. At the time, the company cited the increased costs of patent licensing in the sector and Apple and Samsung's dominant position.
Instead, the company will focus on using its own chip technology exclusively and selling it into the automotive sector, as well as the embedded market so beloved by marketeers as the basis of the coming "internet of things." ®