SAN FRANCISCOProgrammable logic supplier Xilinx Inc. Wednesday (April 15) confirmed that it expects to cut up to 200 jobs, or 6 percent of its global workforce, as part of a series of restructuring measures designed to improve structural operating efficiencies.
Xilinx (San Jose, Calif.) said it would incur a pre-tax charge of roughly $11 million to $13 million related to severance expenses during the June quarter. Xilinx said it is also implementing other short-term cost savings including executive salary reductions and a broad-based employee salary freeze.
Xilinx said it expects to generate cost and operating expense savings of about $4 million to $5 million per quarter beginning in the June quarter. Restructuring charges will not impact the recently ended March quarter, the company said.
Over the longer term, Xilinx said it expects to implement further supply chain efficiencies resulting in additional restructuring charges totaling approximately $10 million over the September, December and March quarters of fiscal 2010. These efficiencies are expected to result in changes to the structure and location of certain global operations, which are expected to provide the company with further cost savings over time, Xilinx said.
Xilinx is currently in its quiet period and plans to announce March quarter results on April 22.
Earlier Wednesday, reports originating out of Ireland said 130 of the company's 400 Ireland-based workers would be impacted by
the workforce reduction.
A spokesperson for Xilinx said the company is not disclosing the geographical distribution of the workforce reduction, but did confirm that the Irish arm of Xilinx will enter into consultation with its staff on the proposed implementation of up to 130 job cuts, taking place over a nine-month period. Ireland will continue to serve as Xilinx' headquarters for operations in Europe, the Middle East and Africa, the spokesperson said.