Bad news for Texas Instruments employees focusing on the mobile market. The company will eliminate about 1,700 jobs worldwide, as part of a cost-reduction initiative. TI says it plans to focus investments in its wireless business on embedded markets instead, an area which has greater potential for sustainable growth.
TI intends to focus its OMAP processors and wireless connectivity solutions on a broader set of embedded applications with long life cycles, instead of its historical focus on the mobile market where large customers are increasingly developing their own custom chips. These changes require fewer resources and less investment.
The company expects annualized savings of about $450 million by the end of 2013, resulting from its cost-reduction programs. Total charges will be about $325 million, most of which will be accounted for in the current quarter.