Texas Instruments confirms it is moving away from phones, will slash 1,700 jobs
While TI OMAP chips are still found in some of the most popular on the market like the Amazon Kindle Fire, the Motorola Droid and last year's Samsung Galaxy Nexus, most recently competition has gotten really aggressive with Qualcomm and Samsung now powering most modern devices. Nvidia is also expected to catch up next year. All of that forced TI out of the business.
Slashing 1,700 jobs means a 5% reduction in workforce, but also savings of $450 million per year. The change will initially be tough and TI will immediately take a $325 writedown this quarter.
source: Texas Instruments via AllThingsD
TI to reduce costs in Wireless business; OMAP™ processors and wireless connectivity solutions will focus on embedded markets
DALLAS, Nov. 14, 2012 /PRNewswire/ — Consistent with previously stated strategic plans, Texas Instruments (TI) (TXN) announced today it will reduce costs and focus investments in its Wireless business on embedded markets with greater potential for sustainable growth. Cost reductions include the elimination of about 1,700 jobs worldwide.
TI previously outlined intentions to focus its OMAP processors and wireless connectivity solutions on a broader set of embedded applications with long life cycles, instead of its historical focus on the mobile market where large customers are increasingly developing their own custom chips. These changes require fewer resources and less investment.
“We have a great opportunity to reshape our OMAP processor and wireless connectivity product lines to concentrate on embedded markets. Momentum is already building with new embedded applications and a broad set of customers, and we are accelerating our efforts in these areas,” said Greg Delagi, senior vice president of Embedded Processing. “These job reductions are something we do with a heavy heart because they impact people we care deeply about. We will work closely with all employees affected by these changes to provide a range of assistance related to compensation, benefits and job search.”
As a result of these actions, the company expects annualized savings of about $450 million by the end of 2013. Total charges will be about $325 million, most of which will be accounted for in the current quarter. TI’s fourth-quarter outlook, published on October 22, did not comprehend these restructuring charges.
5. Captain_Doug (Posts: 784; Member since: 10 Feb 2012)
They announced all this awhile back and said they would still make the omap 5 line.
2. cepcamba (Posts: 717; Member since: 27 Feb 2012)
Sad sad sad. I was hoping to see an A15 OMAP chip.
6. Captain_Doug (Posts: 784; Member since: 10 Feb 2012)
8. TylerGrunter (Posts: 1040; Member since: 16 Feb 2012)
You'll see them, it's just that they will be their last mobile SoCs. Saddly enough.
3. jove39 (Posts: 1320; Member since: 18 Oct 2011)
Sad...they were only one (that I know of) who use ImageTec's gpu on soc outside apple as of now...sammy moves to Mali and qualcomm has adreno...I liked demo of their Omap5 running 545MP2!!!
7. Lawliet (Posts: 160; Member since: 02 Jul 2012)
The next NovaThors will use PowerVRSGX ass well, IIRC
9. JunitoNH (Posts: 965; Member since: 15 Feb 2012)
Oh....Sammy this is great news, more for you to built. Now lets get Intel and Apple out of the picture forever, and then the Universe, cry of Korean lovers (Samsung); frankly, we hate Apple, and you Sammy dear, are creating some many jobs in the US. I rather be unemployed, as long as I have your quad core next to me keeping me warm.
11. MC1123 (Posts: 1247; Member since: 12 Nov 2012)
lol... no! not every one love samsung!!! i like kpop but dont like samsung or lg!
10. oldmandaddy (Posts: 64; Member since: 01 May 2010)
In 90s, there were king and queen, Nokia and TI. Now sad sad, to see them go.
12. MC1123 (Posts: 1247; Member since: 12 Nov 2012)
im wishing someone will get TI engineers! and the OMAP line too!! either amazon or apple! atleast they save the OMAP brains!