Cadence to axe 560 jobs

Chip design software developer Cadence Design Systems is to axe 560 jobs and take a $36 million hit to its Q4 results, due next January, to pay for the losses, the company admitted. The cuts, which amount to 12 per cent of the Cadence's workforce throughout the world, are designed to reduce the company's cost structure by $8 million next quarter and a further $60 million in the next financial year. "The demand for our products and services is very strong," said Cadence president and CEO Jack Harding. "However, we have been dissatisfied with cost-effectiveness, particularly in the services business. This action improves our services margins and [will] streamline the company." Cadence's restructure follows its Q3 results, when it emerged that despite a 31 per cent increase in revenue to $308 million, the company's operational costs and expenses had increased by an even greater factor. ® Click for more stories Click for story index