Business, Philippines, Tech News

Texas Instruments to exit mobile market and layoff 1,700 jobs worldwide

Texas Instruments (TI) just announced they’ll be cutting at least 1,700 jobs worldwide, this is to reduce costs and focus more on OMAP processor and wireless connectivity product lines, this signals their exit to mobile market since major players in the space like Apple and Samsung have been reported to be developing their own custom chips.

Instead, TI will focus more on OMAP processors and wireless connectivity solutions on embedded markets which TI is saying is more stable and have the potential for sustainable growth. In the press release Greg Delagi, senior vice president of Embedded Processing said “We have a great opportunity to reshape our OMAP processor and wireless connectivity product lines to concentrate on embedded markets. Momentum is already building with new embedded applications and a broad set of customers, and we are accelerating our efforts in these areas,”…”These job reductions are something we do with a heavy heart because they impact people we care deeply about. We will work closely with all employees affected by these changes to provide a range of assistance related to compensation, benefits and job search.”

The cost reduction/layoffs will affect their annualized savings of about $450 million by the end of 2013, so expect TI to hand out those pink slip by next year.

No word yet if this announcement will affect the TI’s subsidiary in the Philippines. Texas Instrument have two subsidiary in the Philippines; one in Baguio which have been operating for more than 20 years and one in Clark (Pampanga) which have more than 3000 employees and began its operation last April 2009.

I’ve contacted some of my friends who are working at TI Clark and ask if their affected by cost reduction, I’ll update once I got received their reply.

Anyhow, you can read Texas Instrument’s full announcement below.

TI to reduce costs in Wireless business; OMAP™ processors and wireless connectivity solutions will focus on embedded markets

Nov 14, 2012

DALLAS, Nov. 14, 2012 /PRNewswire/ — Consistent with previously stated strategic plans, Texas Instruments (TI) (NASDAQ: TXN) announced today it will reduce costs and focus investments in its Wireless business on embedded markets with greater potential for sustainable growth. Cost reductions include the elimination of about 1,700 jobs worldwide.

TI previously outlined intentions 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.

“We have a great opportunity to reshape our OMAP processor and wireless connectivity product lines to concentrate on embedded markets. Momentum is already building with new embedded applications and a broad set of customers, and we are accelerating our efforts in these areas,” said Greg Delagi, senior vice president of Embedded Processing. “These job reductions are something we do with a heavy heart because they impact people we care deeply about. We will work closely with all employees affected by these changes to provide a range of assistance related to compensation, benefits and job search.”

As a result of these actions, the company expects annualized savings of about $450 million by the end of 2013. Total charges will be about $325 million, most of which will be accounted for in the current quarter. TI’s fourth-quarter outlook, published on October 22, did not comprehend these restructuring charges.

Image via ti.com

Bad Behavior has blocked 2810 access attempts in the last 7 days.