Texas Instruments To Close Plant
SAN FRANCISCO (AP) _ Texas Instruments Inc. said it will close a Silicon Valley computer chip plant later this year and lay off about 600 workers, adding to the recent deluge of pink slips in the nation’s high-tech hub.
Dallas-based Texas Instruments said Wednesday it is closing a Santa Cruz chip plant as part of a cost-cutting program undertaken to offset a sharp loss in revenue. The company has warned that its revenue for the current quarter will plunge by about 20 percent from fourth quarter revenue of $3 billion.
About 600 workers are expected to lose their jobs when the Santa Cruz plant closure is completed by the end of the year. That’s slightly more than 1 percent of Texas Instrument’s worldwide work force of 42,481 as of Dec. 31.
The company expects to whittle its payroll even more through a hiring freeze and early retirement offers.
The Santa Cruz closure will leave Texas Instruments with 13 other chip plants, including five U.S. locations. The production at the Santa Cruz plant is being shifted to Dallas and Houston.
Texas Instruments’ announcement, made after the stock market closed Wednesday, is just the latest downer for the once high-flying Silicon Valley.
Staggering losses in the stock market over the past year have recently been compounded by a wave of job cuts at some of the Silicon Valley’s greatest growth engines.
In the last week alone, computer giant Intel Corp. and computer networking titan Cisco Systems Inc. have announced that they will eliminate up to 13,000 jobs this year.
The cutbacks reflect a growing sentiment among Silicon Valley leaders that the deepening economic slowdown will turn into a recession that may last into 2002. At the outset of this year, the prevailing sentiment was that the technology industry’s prospects would improve during the final half of 2001.
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