LONDON – Trident Microsystems Inc., a provider of chips for TVs and set-top boxes, has announced that it plans to lay off about 275 employees out of a total of 1,275 so that is can lower its financial breakeven point. The jobs will be cut in all functional areas and are due to go by early in 2012, the company said They are described as a key step in the company's turnaround strategy.
As a result of these cuts and other cost saving measures Trident (Sunnyvale, Calif.) expects to reduce its annual costs by between $40 million and $48 million and reduce its EBITDA breakeven level to approximately $340 million to $360 million in annual revenues. Trident said it expects to incur between $8 million and $10 million in restructuring charges, including approximately $2 million to $3 million in the current quarter ending Sept. 30.
"We are taking decisive actions to better position Trident for success as we enter 2012, given the current mass production timing of our new design wins and the soft economic environment," said Trident's chief executive officer Bami Bastani, in a statement.
Two years ago a deal saw NXP Semiconductors BV (Eindhoven, The Netherlands) transfer its television and set-top box chip business to Trident in return for a 60 percent stake in the company. It is not clear what percentage NXP currently holds in the publicly traded Trident.
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