Texas Instruments to cut cost reductions include the elimination of about 1,700 jobs worldwide.

TI has announced plans to reduce costs and focus investments in its wireless business on embedded markets.

TI 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 their own custom chips. These changes require fewer resources and less investment, TI indicated.

As a result of these actions,TI expects annualized savings of about US$450 million by the end of 2013. Total charges will be about US$325 million, most of which will be accounted for in the fourth quarter of 2012. TI added that its fourth-quarter outlook, published on October 22, did not comprehend these restructuring charges.

"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," said Greg Delagi, senior VP of Embedded Processing. "We will work closely with all employees affected by these changes to provide a range of assistance related to compensation, benefits and job search."

By: DocMemory
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