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Anadigics, Intersil cut jobs
Anadigics will eliminate about 100 jobs or approximately 15% of its workforce, while Intersil will reduce its global headcount by 9% or approximately 140 positions.
By Suzanne Deffree, Managing Editor, News -- Electronic News, 11/5/2008
Add two more companies to the growing list of reorganizations forced by the current economic conditions.
Anadigics Inc and Intersil Corp today each reported plans to lay off employees on the semiconductor industry's generally sluggish 2009 outlook.
“Unfortunately, we are entering a period of significant uncertainty and we feel the prudent approach is to respond quickly” said Dave Bell, Intersil’s president and CEO, in a statement from the Milpitas, Calif-based analog company. “We are taking action to lower our current and future operating expenses in order to align our cost structure with the current business conditions, and maintain our competitive position during this economic downturn.”
Intersil said the layoffs will reduce its overall annual operating costs by approximately $12 million to $14 million and that it expects to record one time pretax charges of approximately $20 million to $23 million in Q4 on the action.
“We believe we are taking the necessary steps to not only respond to the current economic conditions, but also to better prepare Intersil for sustained long-term success,” said Bell.
Separately, Anadigics today said that it will eliminate about 100 jobs or approximately 15% of its workforce by the end of this week.
The cost-reduction measures were first noted, but not detailed, on the Warren, NJ-based RF chip maker's October 22 September quarter conference call.
“This was a difficult decision because of the impact it has on people, but was a necessary step in our plan to return the company to growth and profitability as soon as possible," Gilles Delfassy, Anadigics's chairman and interim CEO, in a statement. "We are continuing critical investments in new products and other strategic initiatives that focus on making our customers successful.”
Anadigics expects that the layoffs and other cost reduction actions already in process will save it between $15 million and $20 million a year starting in Q4. The company also expects the job cuts to result in pre-tax charges of approximately $2.2 million to $2.4 million in Q4.
Neither Anadigics nor Intersil said what types of positions would be cut.
