Camarillo, Calif.-based chipmaker Semtech Corp. has announced plans to lay off 6 percent of its workforce due to reduced demand for its products. The company expects to save $35 million with the reductions during its 2015 fiscal year.
Semtech makes chips used in automated test equipment and power-management devices. Its most recent annual report, from last March, listed global headcount of 1,433 – meaning the cuts would affect about 86 jobs. The company did not say how many jobs would be cut or the locations that would be affected. It has 31 offices worldwide in 14 countries.
“Due to the significant reduction in demand in the second half of our fiscal year 2014, we have initiated a series of operating expense reductions across the company. We believe these actions position the company to accelerate earnings growth as our overall demand returns to growth,” President and CEO Mohan Maheswaran said.
Semtech’s expenditures on research and development – where it reportedly employs more than 500 people — have grown in the past couple of years, reaching $129.59 million in October 2013. Meanwhile, its stock price has taken a dive since December, when it lowered projections for fourth-quarter revenue and profit based on weaker demand from its largest smartphone customers.