SAN JOSE, Calif. — PMC-Sierra Inc. is cutting 175 jobs and is closing two design centers amid a slowdown in its business.
The cost-cutting program will include the closure of two of PMC-Sierra's R&D centers in Winnipeg, Manitoba and Saskatoon, Saskatchewan. The total work force reduction under this restructuring is expected to be approximately 175 positions across the organization, roughly 15 percent of the company's work force.
PMC-Sierra currently has 1,183 employees worldwide. The restructuring will begin immediately and is expected to be substantially complete by the end of the third quarter of 2007.
The company estimates the total costs and charges associated with the restructuring will be approximately $12 million to $14 million.
"By improving the efficiency of our operations while focusing on our most promising growth opportunities, PMC-Sierra will become more efficient and be in a better position to compete and gain share in our key target market segments," said Bob Bailey, Chairman and CEO of PMC-Sierra, in a statement. "These initiatives will better align our efforts on our strategic customer engagements in the Fiber To The Home, enterprise storage, and other communications infrastructure product areas."