SAN FRANCISCO—TV and video processing SoC vendor Sigma Designs Inc. said Wednesday (Oct. 31) it us cutting jobs as part of a broad corporate restructuring plan to return the company to profitability next year.
In addition to job cuts and other cost control measures, Sigma Designs (Milpitas, Calif.) said it is investigating strategic alternatives for several of its R&D programs, including the potential sale of some of the programs.
Sigma Designs said it expects the job cuts to save the company about $26 million per year in labor costs. In total, the company said the actions it outlined Wednesday—including migration to lower cost manufacturing components and processes—would save the company about $45 million starting in its fiscal year 2014, which opens next February.
The initial job cuts consisted of 43 layoffs, mostly in North America. The company expects to make further jobs cuts and has already implemented expense management measures across its operations worldwide, it said. The company said it expects all of the restructuring measures to be completed by early February.
Thinh Tran, Sigma Designs' CEO, said in a statement that the company's senior executives and board of directors conducted an analysis of the company's business opportunities by product line with the goal of establishing sustainable, profitable growth. "This analysis resulted in difficult decisions which are necessary to regain profitability," Tran said.