Texas Instruments cuts 5% jobs citing reorganization
In a move to consolidate it's grip over the embedded system market, US tech firm, Texas Instruments has announced that it will shut down it's smartphone chip manufacturing unit and hence, cut around 1,700 jobs, that nearly amounts to cutting down 5 percent of it's workforce.
In September, Texas Instruments said in that the company would stop it's pricey investments in the smartphone and tablet chip business, which today sees a cut-throat competition. Since then, many analysts believed that the announcement hinted about the copmany's plans to sell of it's processor unit, OMAP.
Of late, Texas Instruments has seen a stiff competition in the smartphone processors market as it has constancy lost it's ground to rivals like Qualcomm Inc. Moreover, various smartphone manufacturers like Apple and Samsung have started developing and using their own chips in their smartphones, instead of buying them from vendors like Texas Instruments and thus, the sales of their OMAP processors has dropped.
Greg Delagi, Senior vice president of embedded processing, Texas instruments said, " These job reductions are something we do with a heavy heart because they impact people we care deeply about. We will work closely with all employees affected by these changes to provide a range of assistance related to compensation, benefits and job search."
Currently, TI's OMAP 4 processor powers various smartphones and tablets like the Amazon Kindle and even the next version of Amazon.com's Kindle line of tablets are expected to run on the next-gen, OMAP 5 processor.
Greg Delagi also added, "We have a great opportunity to reshape our OMAP (Open Multimedia Applications Platform) processor and wireless connectivity product lines to concentrate on embedded markets."
Texas Instruments has around 35,000 employees globally, and the current job-cut would approximately save the company around $450 million by the end of 2013.