Profitable TI to cut 1,100 jobs
The announcement came as part of reporting on financial results for the fourth quarter of 2013 in which it said it would take a change of $49 million against the job elimination. Charges of about $30 million will also be included in 1Q14 results. TI employed about 34,150 employees at the end of the 3Q13.
Despite the cuts TI announced a net income of $511 million on revenue of $3.03 billion in 4Q13. The net income was down from $629 million on revenue of $3.24 billion in the previous quarter, in line with seasonality. Compared with the same quarter a year before both profit and revenue were up. In 4Q12 TI made a net profit of $264 million on sales of $2.98 billion. For the full calendar and financial year 2013 TI made a net profit of $2.16 billion on sales of $12.21 billion.
"The combined revenue from analog and embedded processing grew 12 percent over last year’s fourth quarter and comprised 82 percent of total revenue. Individually, analog was up 12 percent and embedded processing was up 11 percent from a year ago," said Rich Templeton, TI’s chairman, president and CEO, in a statement. He added that the outlook for 1Q14 was for sales to be between $2.83 billion and $3.07 billion.
Analog revenue increased primarily due to power management while embedded processing revenue increased primarily due to microcontroller sales.
The company said it is no exiting any markets or discontinuing any existing products but that it is reducing investments in markets that do not offer sustainable growth and returns. The $80 million of charges to cut 1,100 jobs is expected to produce annual savings of about $130 million by the end of 2014, the company said.
TI had about $3.8 billion of cash and short-term investments on hand at the end of the year.
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