Sources inform "Globes" that Texas Instruments Inc. (NYSE: TXN) is laying off 50-100 out of its 350 employees in Israel as part of its global cuts. The company is cutting 1,700 employees worldwide as part of its previously announced cost-cutting measures. Texas Instruments has R&D and sales employees in Israel mainly at its design center in Ra'anana, which is engaged in mobile communications technology.
Texas Instruments said, "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 that most of the layoffs will be in the US, France, India, and Israel.
The company said that the restructuring was due to the switch to OMAP processors and wireless connectivity solutions from its historic focus on the mobile markets, where large customers are increasingly developing their own custom chips. "These changes require fewer resources and less investment."
Texas Instruments said that it will report a one-time charge of $325 million, mostly in the current quarter, for the layoffs, but that they will save the company $450 million a year by the end of 2013.
Texas Instruments Israel general manager Avner Goren said in response, "This decision is consistent with TI's 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 internal capabilities to implement their own custom chips.
He added, "While this news will impact some of TI’s population in Israel, I want to emphasize that TI remains committed to its presence in this business community and the site where our employees work. We will continue to have our design center which is used for connectivity, as well as our Israel sales team. TI's design center in Israel has led and will continue to lead technology innovation and we remain fully committed to our customers and business partners, through this transition and beyond."
Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2012
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