Texas Instruments Is Laying Off Around 1,700 People
Texas Instruments is laying off 1,700 people as they wind down the mobile processor business to work on chips that are more profitable. Texas Instruments said this past September that they would halt their investments that are high in the increasingly competitive smartphone and tablet market. The layoffs are equivalent to 5% of their workforce.
Texas Instruments has faced intense competition from Qualcomm. And smartphone manufacturers like Apple and Samsung have started developing their own chips instead of buying them from suppliers like Texas Instruments. Texas instruments wants to sell their OMAP processors in markets for industrial clients like car manufacturers.
Texas Instruments will continue selling tablet and phone processors for products like the Amazon Kindle. But they will stop developing new chips. Amazon is expected to take charges of around $325 million related to the job cuts and other cost reductions for the current quarter.
The company has around 35,000 employees around the world and they expect an annual savings of around $450 million by the end of 2013.