LONDON — Communications chip group Tundra Semiconductor Corp. is reducing its headcount by 20, or about 7 percent of the company's global workforce, and will not fill several vacant positions as it restructures to shore up its finances.
Tundra (Ottawa, Canada), which specializes in System Interconnect devices, said most of the job cuts will be in R&D and administrative functions.
The company is taking a restructuring charge of about $1.6 million in the first quarter of fiscal 2008, and it expects cost savings of approximately $2 million in fiscal year 2008.
"This initiative is part of the ongoing transformation of Tundra's business that the new leadership team has undertaken over the last six months. We are rebalancing our resources and expenses to enable success of our long-term growth strategy.
"These actions, while difficult, are essential to Tundra becoming more efficient operationally, for both the short and long term," said Daniel Hoste, president and CEO of Tundra Semiconductor.
Hoste took up the dual roles last September from Jim Roche, who co-founded the company in 1995.