SAN FRANCISCO Security chip provider Hifn Inc. plans to close its Carlsbad, Calif. design facility and reduce its overall workforce by about 22 percent, the company said Wednesday (June 28).
Chris Kenber, Hifn chairman and CEO, said through a statement that the move is in line with company plans to focus on its two key networking and storage market and take advantage of its expanding development capacity in China.
HiFn (Los Gatos, Calif.) said the restructuring is expected to save the company $6 million to $7 million annually, with most of the savings reflected in lower R&D costs.
Hifn said it will continue to employ more than 100 developers at its remaining facilities in the United States and China. A restructuring charge of approximately $500,000 is expected to be recorded in the quarter ending June 30, the company said. An additional charge of $600,000 is expected to be recorded in the quarter ending Sept. 30, when the Carlsbad facility is closed, HiFn said.
"While our outlook for the next several quarters is positive, Hifn is streamlining the company's development efforts to concentrate on its core expertise of providing security, compression, content search and flow classification technology solutions for network and storage developers," Kenber said.
HiFn said the layoff and closure are intended to accelerate the company's return to profitability.