Texas Instruments, the world's third largest chipmaker, reported lower sales and announced layoffs on Monday as demand in all its key markets continued to weaken, the Financial Times said.
Its Q4 sales fell to $2.49 billion, or 8 cents a share, below analyst estimates of 11 cents. Quarterly profit fell to $107 million from $756 million a year ago.
However, the profit decrease was smaller than expected and shares were up 5% in after-hours trading. Annual income fell 10% to $12.5 billion, primarily because of falling sales in the wireless segment.
TI announced a 12% reduction in its workforce, with 1,800 layoffs and 1,600 voluntary retirements. The company will take a $300 million charge for the cuts but the move, with other measures, will save about $700 million a year.