Texas Instruments Inc. announced on Jan. 26 it was cutting 12% of its global workforce, or about 3,400 jobs, as the weak economy dragged down profits.
The Dallas, Texas-based electronics and semiconductor manufacturer said the reductions would come through 1,800 layoffs and 1,600 voluntary retirements and departures and would result in charges of about $300 million. Combined with a restructuring of the company's wireless business announced in October, the reductions would result in annualized savings of $700 million.
"We are realigning our expenses with a global economy that continues to weaken," chief executive Rich Templeton said. "By reducing expenses now, we keep TI financially strong and able to invest for future growth.
"We are not counting on a near-term economic rebound for improvement," he added.
Texas Instruments said net profit fell 27% to $1.92 billion in 2008 compared with the previous year.
In the fourth quarter, net profit fell 86% to $107 million, dragged down by $254 million in restructuring costs.
Copyright Agence France-Presse, 2009