Cadence Design Systems is gearing up to cut 60 workers from its San Jose, Calif., headquarters next month, as the design automation tools maker anticipates ending 2013 with smaller than expected profits.
The layoffs are planned for Jan. 4, according to the company’s notice to the State of California. The cuts represent roughly 1 percent of the 5,200 workers the company employed worldwide at the close of 2012.
While Cadence is expected to generate revenue of $1.45 billion for 2013 and mark four years of consecutive annual growth, its net income is expected to fall short. Cadence started 2013 with the expectation its annual net profit would be in the range of 58 to 68 cents a share. It now expects it to be closer to 55 to 56 cents a share when it exits the year.
In October, the company’s stock fell by 12 percent after it reported its third quarter earnings results and noted that revenues for the fourth quarter were expected to come in below Wall Street’s estimates, said investor site Seeking Alpha.
It’s not clear if Cadence’s expected drop in profits from its earlier projections is the reason for the company’s upcoming layoffs. Cadence was not immediately available for comment. Interestingly, the company is apparently also in the hiring mode, as it has 109 job openings posted on its website for its North America operations.
What will be telling is whether its overall headcount rises above the 5,200 that it had in 2012, when it reports its 2013 financial results later next month.