Cypress to Cut About 500 Jobs
October 03 2016 - 6:20PM
Dow Jones News
Cypress Semiconductor Corp. plans to cut about 500 jobs as part
of its latest cost-cutting plan, the company disclosed Monday.
The San Jose, Calif.-based company, which as of Jan. 3 had about
6,300 workers, estimated the job cuts would cost it $40 million to
$50 million and said it would record the bulk of the charges in the
third and fourth quarters.
The latest cuts, about 8% of the workforce, come about a month
after Cypress promoted Hassane El-Khoury to chief executive,
replacing company founder T.J. Rodgers, who held the top post for
more than three decades and is regarded as one of the most
prominent leaders in the microchip industry.
Mr. El-Khoury joined Cypress in 2007 after years at Continental
Automotive Systems Inc., one of the leading suppliers of electronic
products for car makers. At Cypress, Mr. El-Khoury has helped build
the automotive chip business, which now accounts for about
one-third of its sales.
Cypress, which is trying to strengthen its position in emerging
trends, such as the so-called Internet of Things, reported its loss
for the first half of the year nearly doubled to $623.3 million
though revenue rose 25% to $869.1 million.
As of July 3, the most recent results available, Cypress
reported $188.3 million in cash and $833.8 million in debt.
Shares closed Monday at $12, up 22% this year.
Write to Maria Armental at maria.armental@wsj.com and Don Clark
at don.clark@wsj.com
(END) Dow Jones Newswires
October 03, 2016 18:05 ET (22:05 GMT)
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