MANHASSET, N.Y. Pericom Semiconductor Corp. announced Wednesday (Feb. 23) it would reduce its workforce by 25 employees as part of a cost reduction program slated to save $1.2 million annually.
Pericom (San Jose, Calif.) said the cost reductions resulted from the company's increased emphasis on outsourcing manufacturing to Asia-based subcontractors, as well as the integration of SaRonix Corp. which was acquired 17 months ago.
The company will take a restructuring charge in the March 2005 quarter of up to $250,000 to cover severance and other costs related to the transition.
Alex Hui, president and chief executive of Pericom, said in a statement, "We have also re-aligned our sales and marketing organizations to drive and support planned shifts in our product mix and expansion of our served markets. We will selectively add resources as necessary to staff the organization to execute our strategy."