Plans to shift R&D operations to new and emerging markets
National Semiconductor has announced plans to cut approximately 1,725 jobs in response to the global economic downturn with a reduction of overall expenses and a shift of R&D operations to new and emerging markets.
The company plans to lay off approximately 850 jobs worldwide in product lines, sales and marketing, manufacturing, and support functions. It also plans to cut 875 jobs as part of the manufacturing consolidation plan. It will close its assembly and test plant in Suzhou, China and wafer fabrication plant in Arlington, Texas. After the consolidation, it will have three manufacturing facilities: wafer fabrication plants in South Portland, Maine, and Greenock, Scotland, and an assembly and test facility in Melaka, Malaysia.
The company expects to incur charges between $160m and $180m related to severances, asset impairments, and other related costs, of which $130m to $145m will be recorded in the fourth quarter 2009 and the remainder in subsequent quarters.
Brian L Halla, chairman and chief executive at NatSemi, said: The worldwide recession has impacted National’s business as demand has fallen considerably. However, the actions we announced today will help us remain competitive as we continue to focus on growing markets that can benefit from our new energy-efficiency initiatives.
The company recently reported a 71% decline in third-quarter net income to $21.1m compared to $72.9m in the year-ago quarter, on revenue down 31% at $292.4m.