Gennum (Burlington, Ontario, Canada) said the plans include realigning its investment to maintain its R&D programs while reducing corporate infrastructure and business operations costs and capital expenditures. The company said it would also focus its marketing, sales and administrative investment on short and mid-term customer revenue generation activities and new product development.

The roughly 41 employees being let go are primarily from the company's corporate infrastructure, business operations and support functions, Gennum said. The company said it expects to incur charges in the third quarter of 2009 of about $3.5 million, mostly from severance, and another $2 million non-cash impairment charges associated with realignment of the company's investments.

In a statement, Frank Fink, president and CEO of Gennum, said he believes the actions will enable the company to improve profitability and cash flow in 2009.

"We are encouraged by improving visibility," Fink said. "This is a function of continued reduction of customer inventory levels and improvement in end market demand for our products as well as modest improvements in our fiscal third quarter orders."