job cuts

Texas Instruments has announced plans to cut around 3% of its workforce.

In a trading update, the chipmaker said 1,100 jobs could go in the US, Japan and India under a corporate restructuring drive to save $130 million (£79 million) by the fourth quarter of 2014.

TI explained that it wanted to cut costs at its embedded-processing division and Japanese operations. The company posted a fourth quarter net income of $511 million, or 46 cents per share. The figure represents reduced earnings owing to a $49 million restructuring charge.

Group revenue rose to $3.03 billion in the fourth quarter; up marginally from $2.98 billion in the same quarter last year. Looking ahead, TI estimated first quarter revenue of $2.83 billion down from $3.07 billion in the first quarter of 2013.

CFO Kevin March said that the company would stop providing mid-quarter updates to its outlook because its business increasingly reflects "broad trends" instead of changes caused by major customers.

On the subject of restructuring, March said: "Technology markets mature from time to time and you have to rebalance where you spend your money. In the case of Japan, the size of the market there has been declining for a number of years."