Jan. 16, 2002 – Milpitas, CA – LSI Logic Corp. is cutting 20% of its work force and is divesting two businesses in an effort to return to profitability in the second half of the year.
The company will take a charge in the range of $50 to $70 million in 1Q02 to cover the restructuring actions, reported Reuters. The cuts are expected to reduce cost of sales and operating expenses by about $30 million per quarter.
LSI said it would cut 1,400 positions from its worldwide work force. It also said it is divesting its CDMA handset and DSL standard product business units and that it is in talks to sell them. LSI is also restructuring its Tsukuba, Japan, manufacturing operations.
LSI recently closed its Colorado Springs and Santa Clara manufacturing facilities.
LSI also said it will meet its guidance for 4Q01 revenue growth of 0.0 to 5.0% over the $397 million reported in 3Q. It also said it will meet its projection of a pro forma 4Q loss of $0.23 compared with the pro forma 3Q loss of $0.29.