TI To Eliminate 3,500 Jobs
DALLAS (AP) _ Texas Instruments is eliminating 3,500 jobs worldwide partly because of the weak market for semiconductors, which has seen low prices and low demand because of the Asian economic crisis.
Texas Instruments said Thursday the jobs would be cut as part of a broad restructuring that includes the sale of its memory chip business to Micron Technology for a combination of common stock and debt totaling approximately $800 million.
TI said the jobs would be cut through layoffs as well as attrition.
The company expects the layoffs to be implemented within the next few months, ultimately saving TI about $270 million a year. TI said it would be selling the memory business at a loss.
In the past several years, TI has divested 12 businesses and concentrated on semiconductors. Prices for semiconductors, many of which are made in South Korea, have fallen in the past year as the country’s currency has weakened. Also, the Asian problems have led to a more widespread lack of demand throughout the region.