Cirrus to lay off workers
Reflecting a softening demand for PCs, Cirrus Logic has announced that it will lay off a sizable chunk of its work force.
The company, a major manufacturer of chips for PCs, also said it expected lower revenue and a "substantial" operating loss in the quarter ending March 30.
About 13 percent of its work force of 3,500 will be laid off and further cost reductions will be achieved through a reduction of bonus payments, Cirrus said.
The company will focus on what it terms "key new products" to drive revenue growth. These products include chips for hard disk and CD-ROM drives, multimedia (including 3D graphics and video) chips, and communications chips, including those used for faxes and modems.
Cirrus Logic will proceed with plans to expand its manufacturing base at MiCRUS, its joint venture with IBM, and plans for its joint venture with Lucent Technologies (formerly AT&T Microelectronics) in Orlando, Florida.