Hit by a global slowdown in demand for semiconductors, Cirrus Logic Inc. plans to lay off 300 staff, or 30 percent of its employees, before December in a bid to cut costs, the company announced on Monday.
The staff cuts will bring the company annualized savings of US$15 million to $20 million, according to a company statement. As a result of the layoffs Cirrus will take a one-time cash charge of $4 million to $5 million during the third quarter in addition to a non-cash restructuring charge of around $15 million, it said.
Cirrus' second-quarter revenues will be near the low end of guidance which placed the company's second-quarter revenue at between $75 million to $85 million, the statement said.
This is the second round of layoffs announced by Cirrus Logic this year. On May 2, the company announced it would cut 120 jobs, or 9 percent of employees, as part of a plan to exit the market for semiconductors used in hard-disk drives to focus on chips for consumer electronic devices.
Cirrus will announce its second quarter results on Oct. 24.