Semtech Lays Off 6 Percent of WorkersTuesday, January 28, 2014
Semiconductor maker Semtech Corp. is laying off 6 percent of its workforce due to softer demand for its chips used in smartphones and other devices.
The Camarillo company is expected to save $35 million annually following the restructuring. Semtech had 1,433 employees as of January 2013, according to its annual report. A 6 percent reduction would amount to about 85 workers.
Chief Executive Mohan Maheswaran said the cuts were necessary due to a significant reduction in demand in the third quarter and fourth quarter, which ended Jan. 26.
“We believe these actions position the company to accelerate earnings growth as our overall demand returns to growth,” said Maheswaran, in a prepared statement.
In December, Semtech announced lower earnings guidance for the fiscal fourth quarter due to delays in capital expenditures by telecom companies and the release of a new consumer-mobile platform.
Shares closed up 11 cents, or a fraction of a percent, to $22.96 on the Nasdaq.