Chipmaker On Semi to cut up to 870 jobs at Sanyo unit
(Reuters) - On Semiconductor Corp, a maker of power-management chips, said it would cut up to 870 jobs at its Sanyo Semiconductor unit as it looks to reduce costs.
The company said it would cut 600-700 jobs through a voluntary retirement program and take a related charge of about $40 million to $48 million, mostly in the fourth quarter.
It expects to save about $36-$45 million in costs in the first year after completing the retirement program.
The company also said it would close a Sanyo unit in Hanyu, Japan, resulting in the loss of 170 full-time and 40 contract jobs.
On Semi has been trying to turn around the loss-making Sanyo unit it acquired for about $500 million in January 2011. The division designs, makes and sells radio frequency and power-related components used in phones and flash memory devices.
The company, which had about 20,000 employees as of December 31, cut about 250 jobs and canceled annual cash bonuses for senior executives in August last year.
(Reporting by Neha Alawadhi in Bangalore)