Rambus says to cut 15 percent jobs, reorganizes operations
(Reuters) - Technology licensing company Rambus Inc said it has reorganized its businesses into three units and will reduce its workforce by 15 percent as part of its efforts to cut costs.
The company, which has posted a loss for the last three consecutive quarters, appointed a new Chief Executive in June.
Rambus expects to save between $30 million and $35 million in cash annually, most of it from cuts in its general and administrative expenses.
The Sunnyvale, California-based company said the reductions in expense and related workforce will begin in the coming weeks and are expected to be completed during the fourth quarter.
It will take a related charge of $6 million over the next two quarters.
As of December 2011, the company had 456 employees.
Rambus said it now operates three business units -- Memory and Interfaces, Cryptography Research Inc and Lighting and Display Technologies. It also named Martin Scott as the new role of chief technology officer.
Shares of the company, which has a market value of about $531.3 million, closed at $4.76 on the Nasdaq on Wednesday.
(Reporting by Prateek Kumar in Bangalore; Editing by Supriya Kurane)