Rambus cuts 90 jobs
In an effort to save $17 million annually and on more than $144 million in Q2 losses, Rambus plans to cut 90 engineering and non-engineering positions.
By Suzanne Deffree, Managing Editor, News -- EDN, August 15, 2008
Just one day after its IP licensing rival MIPS Technologies announced a 75 employee layoff, Rambus Inc Thursday announced plans to reduce its workforce by approximately 90 positions.
On the action, the Los Altos, Calif-based company will take a restructuring charge of approximately $4 million in Q3 and Q4, primarily related to severance expenses. Rambus expects to save $17 million annually on the layoffs.
Rambus made the announcement after reporting on a Q2 that saw revenue fall significantly while losses increased more than tenfold. June quarter revenues were $35.7 million, down 10.1% sequentially and down 24.9% year over year. Net loss for the quarter was $144.7 million, compared to a net loss of $12.6 million in Q1 and a net loss of $2.7 million in Q2 2007.
"This is a difficult but appropriate adjustment that will position us to succeed in our strategic objectives," said Harold Hughes (pictured, right), Rambus president and CEO, in a statement. "These steps will enable us to enhance our investments in breakthrough technology and strengthen our efforts to protect and be fully compensated for our patented inventions. We remain dedicated to the product commitments that we have made to our customers including the continued support of our leadership XDR memory architecture."
Rambus said the job cuts will be made across its global operations and will impact both engineering and non-engineering positions. After the restructuring, which is expected to be completed by the end of the year, Rambus will have a headcount of approximately 340 employees.
