Analog chip vendor Intersil Corp. (Milpitas, Calif.) is planning to eliminate 200 jobs while consolidating activities and streamlining costs in its manufacturing and support functions, the company said Tuesday (July 13).
The moves are expected to produce annualized savings of over $14 million and Intersil said that a significant proportion of these savings would be in be reinvested in research and development and field sales efforts.
Intersil plans to open sales and technology centers near its largest potential global customers and accelerate staffing in high growth markets, such as China and Korea, the company said.
This streamlining will result in the elimination of approximately 200 positions by the end of the calendar year. The company anticipates recording a charge of $6 million in the third quarter of 2004 related to the workforce reduction.
"The reduction in force in our manufacturing and administrative areas is a difficult but necessary step, as we focus on faster growth, and strengthen our long term leadership position as a high performance analog company," said Rich Beyer, Intersil's president and chief executive officer, in a statement.
"We believe these actions will allow us to continue to compete in and expand our targeted analog markets. We've added a substantial number of positions in engineering and sales over the past year and we expect to accelerate that pace of investment," Beyer said.