Texas Instruments Cutting Staff 12 Percent; Sees Big Q1 Revenue Drop
Texas Instruments (TXN) this afternoon said it will cut its staff by 12 percent, including 1,800 layoffs and 1,600 voluntary retirements and departures. The company will take about $300 million in related charges. TI said total saving from the latest cuts and the restructuring of its wireless business late last year will total about $700 million after all reductions are completed in Q3.
Meanwhile, the company posted slightly better than expected results for Q4, with revenues of $2.49 billion and non-GAAP profits of 21 cents a share, beating the Street at $2.37 billion and 12 cents.
For Q1, however, Texas Instruments sees revenue of $1.62 billion to $2.12 billion, which would be down 15 to 35 percent sequentially from Q4. The company sees EPS for the quarter ranging from a loss of 11 cents a share to a profit of three cents, including charges of three cents a share for restructuring. Back those out, and you get a range of loss of eight cents to a profit of six cents. The Street has been expecting $2.1 billion and four cents.