Tuesday, 16 September 2008

NXP Semiconductors Slashes 4,500 Jobs

NXP Semiconductors has decided to undergo a redesign program that is expected to affect approximately 4,500 people globally between now and 2010.

The reductions--which will be targeted at employees at NXP’s manufacturing base, central Research and Development (R&D) and support functions-- aim to bring the organisation to a healthy financial situation amidst a challenging economic environment, a weakening US dollar and the need to reduce the company’s size after moving its wireless business into a joint venture with STMicroelectronics.

The restructuring cost will result in an estimated cash out of USD 800 million and the expected cost savings is said to amount to USD 550 million.

Moving forward, NXP plans to focus on its Automotive, Identification, Home, and MultiMarket businesses where it has a high share of innovative products and market leadership positions.

Commenting on the redesign plans NXP Chief Executive Officer Frans van Houten said, “This restructuring is a tough measure and it is regrettable that we need to let people go. However, the changes will make NXP a strong, profitable and growing company, with a positive cash flow.

“NXP is transforming into a globally competitive semiconductor company with scale and leadership in its core businesses. Measures include increasing the competitiveness of our manufacturing base and reduction in our work force, resulting in a leaner, customer focused company, well positioned for growth in our core businesses.”

These planned changes are expected to affect employees primarily in the Netherlands, France and Germany.