March 23, 2007 – Layoffs at Texas Instruments are ready to begin by as soon as April 3 lasting through year’s end, starting with more than 200 positions at the company’s Dallas campus, according to the Dallas Business Journal.
Positions affected in the Dallas site target the silicon technology development and foundry engineering units, fallout due to TI’s plans to stop internal development after the 45nm node and utilize foundry partners for 32nm and beyond. Employees will be on paid leave-of-absence for 60 days following termination, and all who are laid off will be eligible to apply for other openings at the company, the paper noted.
The cutbacks are part of TI’s larger cost-reduction plan, which involves cutting 500 jobs through this year from its 31,000-person workforce, totaling about $55 million in restructuring charges but ultimately net about $200 million in annual cost savings. Capex also is being slashed by nearly 30% this year, from $1.27B in 2006 (when it invested heavily in assembly test operations) to $0.9B, “a level that we find very appealing for the company going forward,” CFO Kevin March told listeners during a January conference call.