Creative Technology Friday announced plans to lay off 100 staff at its 3Dlabs subsidiary, saying it would stop developing graphics chips designed for computer workstations and focus on chips for mobile devices instead.
3Dlabs will "de-emphasize its professional workstation graphics business," Creative said in a statement, saying that demand for graphics chips used in workstations was shrinking. The company will instead focus its efforts on developing graphics chips for handheld devices, it said.
Creative will take a total charge of US$34 million as a result of the layoffs, including a one-time restructuring charge of US$9 million during the current quarter and a non-cash impairment charge of approximately US$25 million for goodwill and intangible assets, the statement said.
3Dlabs, which is based in California is a wholly owned subsidiary of Singapore's Creative.