Camarillo-based Semtech to lay off 8 percent of workforce
Camarillo-based Semtech Corp. announced plans to lay off about 8 percent of its workforce.
Semtech, which makes analog and mixed signal semiconductors and announced the cuts July 15, didn’t provide details about the total number of employees that will be laid off, or where the cuts will happen.
The company said in a news release that the layoffs will save the company $20 million per year. To execute the layoffs, Semtech will incur $3.5 million in costs it expects to experience during the second and third quarters of 2016.
Semtech said a slow down of the smartphone market drove the workforce reductions.
“Given our recent revenue decline driven primarily by weak Korean smartphone demand, we have made the very difficult decision to reduce our headcount and operating expenses across a majority of Semtech’s locations,” said Semtech CEO Mohan Maheswaran.
“Our recent investments in infrastructure will allow us to scale more efficiently as our revenue grows.”
In January of 2014, Semtech announced that it would lay off 6 percent of its workforce, which was then about 1,300 workers. At the time, Semtech said those layoffs would save the company about $35 million annually. Semtech has 31 offices in 14 countries worldwide.
Semtech’s website says it currently employs over 1,200 people.
In its first quarter earnings release, Semtech said it lost $142,000. Semtech’s net sales also slipped by about $2 million from the first quarter of last year.