TI slashes 3,400 jobs amid plummeting profits

Texas Instruments said yesterday it will lay off 3,400 employees or 12 percent of its workforce, amid declining profits. The chipmaker reported revenue of $2.49 billion, down from $3.56 billion last year, and said it had a fourth-quarter net income of $107 million compared with a net income of $756 million in fourth-quarter 2007. 

TI said that it would eliminate 1,800 positions through layoffs, and 1,600 through voluntary retirement and departures. In addition, the company warned that it was not expecting an economic rebound in the near-term. "We are not counting on a near-term economic rebound for improvement," said TI CEO Rich Templeton. "The actions we are taking to reduce expenses and inventory will position TI to deliver solid financial results, even in a period of prolonged economic weakness."

Besides the dour economy, TI has been a victim of increased competition in the chip maker field. Longtime customer Nokia recently decided to work with other chip makers including Broadcom and STMicroelectronics.

TI, of course, isn't the only firm laying off employees-- by our tally more than 60,000 wireless industry employees have been cut since third quarter 2008.  Check out our "Out of Work in Wireless" list here.

For more:
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