Imagination Technologies points at declining iPhone sales at it lays off 20% of its workforce
Imagination Technologies, the company that's best known as a GPU designer for Apple's iPhones and iPads, announced a new round of cost-cutting measures.
In an attempt to reduce costs by $18 million per year, Imagination Technologies will lay off 200 workers and close/sell some of its side businesses. It was just last month that the company announced a first round of cost-cutting measures aimed to reduce costs by $21.7 million.
Furthermore, the company also announced today that its original cost-cutting plans already included 150 layoffs. Overall, the company will lose 350 employees, or about 20 percent of its current workforce.
Speaking to TechCrunch, Imagination said that its three core businesses, graphics and multimedia (PowerVR), processing (MIPS), and connectivity (Enigma), will be unaffected by these cost reductions.
In a letter to investors, Imagination Technologies warned that it will post on operating loss for the 12 months ending with late April. According to the company, the slowdown in iPhone shipment growth is the prime reason for its financial struggles.
At large, Imagination is a company that licenses graphics and video processing technology to other tech companies. In recent years, however, the company's business has been heavily reliant on Apple as its main customer.
Going back to the original iPhone, Apple has been exclusively using Imagination's PowerVR GPUs in its iPhones and iPads. Unfortunately for the video technology company, though, iPad sales have been falling for the past quarters. Furthermore, Apple warned that the first quarter of 2016 will probably bring the first year-over-year decline in iPhone sales.
In an attempt to reduce costs by $18 million per year, Imagination Technologies will lay off 200 workers and close/sell some of its side businesses. It was just last month that the company announced a first round of cost-cutting measures aimed to reduce costs by $21.7 million.
Speaking to TechCrunch, Imagination said that its three core businesses, graphics and multimedia (PowerVR), processing (MIPS), and connectivity (Enigma), will be unaffected by these cost reductions.
At large, Imagination is a company that licenses graphics and video processing technology to other tech companies. In recent years, however, the company's business has been heavily reliant on Apple as its main customer.
Going back to the original iPhone, Apple has been exclusively using Imagination's PowerVR GPUs in its iPhones and iPads. Unfortunately for the video technology company, though, iPad sales have been falling for the past quarters. Furthermore, Apple warned that the first quarter of 2016 will probably bring the first year-over-year decline in iPhone sales.
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