Xilinx cuts jobs for long term growth

Singapore - IC company Xilinx said it will shave off 7% of its global workforce in an attempt to tighten its belt and become a solutions-oriented organisation.

The company said it plans to restructure itself into functional areas to better serve its customers and improve performance.

As a result, Xilinx will eliminate about 250 positions worldwide, but did not disclose the numbers in this region.

"We are unable to provide a breakdown by region, but the workforce reduction is expected to be completed by the end of the next fiscal quarter," a Xilinx spokesperson told ProcurementAsia.

In a statement, the company said it expects to incur restructuring-related charges of approximately US$18-22 million in severance pay expenses and other associated costs.

The restructuring charges is expected to adversely impact Xilinx's first quarter operating expenses, which were forecasted to be approximately flat. However, the company expects the restructuring to assist overall growth plans.

"These changes are the next step in the company's transformation into a solutions-oriented organisation, with a goal to accelerate growth at a faster rate than the overall PLD market," the spokesperson said.