Semtech to cut jobs
Camarillo-based chipmaker Semtech Corp. said Jan. 27 that it is slashing 6 percent of its workforce in anticipation of lower demand for its products in the second half of this year.
Semtech didn’t provide details on the number of employees affected or the locations where the cuts would take place. According to its most recent annual report, filed in March 2013, the company had 1,433 full-time employees around the world, meaning a 6 percent cut would equal about 86 jobs.
The company has about 200 corporate employees in Ventura County, according to Business Times records.
Semtech said the job cuts are expected to result in about $35 million in annual cost savings in its 2015 fiscal year. As a result of the restructuring, it also expects to record one-time charges including employee termination benefits, inventory write-downs and impairments of goodwill and other fixed assets.
“Due to the significant reduction in demand in the second half of our fiscal year 2014, we have initiated a series of operating expense reductions across the company,” Semtech President and CEO Mohan Maheswaran said in a statement. “We believe these actions position the company to accelerate earnings growth as our overall demand returns to growth.”
In December, Semtech downgraded its revenue and profit outlook for the fourth quarter, prompting its share price to plunge 11.2 percent in a single day.
In a Dec. 19 announcement, the chipmaker said it expects fourth-quarter revenue in the range of $120 million to $130 million, down from previous estimates of $132 million to $144 million. It expects earnings per share of between 0 cents and 8 cents, compared to previous projections of 9 cents to 18 cents.
The company is scheduled to release fourth-quarter results in March.
Semtech shares closed down 1.6 percent to $22.85 on news of the job cuts.