Friday, October 22, 2004
Freescale Semiconductor Inc.'s move to cut costs and reduce its workforce is part of a plan to become totally independent from Motorola Inc. by year's end, according to executives from the chip maker.
Freescale Semiconductor (Austin, Texas), formerly the chip unit of Motorola, this week announced it would eliminate 1,000 positions worldwide and record a $65 million restructuring charge in its fourth quarter as the semiconductor supplier streamlines its operations. The chip maker also posted its third-quarter results.
The bulk of the reductions include administrative, sales and related functions, said Michel Mayer, chairman and chief executive of Freescale, in a conference call earlier this week.
The cost-cutting moves come at a time when Freescale prepares to become totally independent from Motorola "by the end of the year," Mayer said. Freescale operated as a unit of Motorola until officially being spun off in July.
Freescale is also moving to become independent amid a lull and an inventory correction in the semiconductor market. Freescale itself exited the third quarter with 72 days of inventory, up from the second quarter but down from the like period a year ago, the company said.
Overall, the company's wireless chip business is improving, while the transmission sector is flat and the networking/computing areas are declining, Mayer said.
By: DocMemory
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