Texas Instruments has announced that it will axe 3,400 employees, as the company continues to battle falling profits as it’s fourth quarter profit saw a massive reduction, sinking by 95 percent, to $51 million, from $996 million in Q4 2007.
“We are realigning our expenses with a global economy that continues to weaken,” TI’s chairman, president and chief executive Rich Templeton said in a statement. “By reducing expenses now, we keep TI financially strong and able to invest for future growth.”
“Most of the reductions will come in our internal support functions and non-core product lines so that a greater percentage of the dollars we spend will go directly toward developing and supporting Analog and Embedded Processing products,” he continues.
“We believe these are the areas that will drive TI’s future growth and allow us to achieve our financial objectives.”
Even with the tiny profit (and that may still be a blessing in disguise), the company is sending 12 percent of its workforce into unemployment. 1,800 will be laid off, while the other 1,600 will be done through “voluntary retirements and departures”.