April 9, 2003 – San Diego, CA – Applied Micro Circuits Corp. is set to realign its global operations in the face of continued softness in its end markets. As of January 1, 2003, the company had 912 employees in its worldwide work force. The company expects to have approximately 626 employees by the end of the calendar year, a 31% reduction.
This realignment, combined with consolidation of certain facilities and the previously announced closure of AMCC’s wafer fab will reduce ongoing operating expenses by $35 to $40 million annually and fixed cost of sales overhead by $15 to $17 million annually.
The realignment will largely be completed by the end of June 2003 and fully completed by the end of this calendar year.