You are all missing the larger point here. Companies are not in business to provide jobs. They are in business to serve markets and make money doing so. What is Exar's primary market and is it shrinking, or stagnant? If it's growing then why was Exar unable to meet that market's demands?
For a company with only 270 employees and $120M per year in revenue, they seem to be excessively diversified -- products & business segments in communication, datacomm & storage, interface and power management. And bleeding lots of cash.
Perhaps DiNardo is preparing to sell a business unit or two, so they can focus on just one or two things they see as growth opportunities, and at the same time raise some cash.
DiNardo said: "Our basic cost structure is sound; we have a major design center in China, a majority of test operations offshore and we are now a lean organization."
My bet is, they are moving most of the company to China (design and test, I bet manufacturing is mostly done there too?). One wonders when the CEO will move.
I was listening to an interesting NPR program recently, about expats. There are apparently plenty of opportunities for people willing to relocate overseas. When I was growing up, this applied to Western Europe. I think these days, best to look to the Pacific rim.
This is a logical result of globalization, after all. And I'm not sure that a government policies can stop it from happening.