UPDATE 2-Vishay cuts Q4 revenue outlook, says to cut jobs

(Adds spokesperson comment, details; updates share movement)

By Shrutika Verma

BANGALORE, Dec 16 (Reuters) - Chipmaker Vishay Intertechnology Inc (VSH.N) cut its fourth-quarter revenue outlook range by $80 million, and said it sees job cuts across three continents.

The company also said it was expanding its ongoing restructuring initiatives, citing market conditions. It expects to record restructuring and severance charges of about $15 million to $30 million in the fourth quarter.

Vishay plans to cut jobs in Europe, Asia and the United States, company spokesman Peter Henrici said.

Henrici, however, did not specify the number of jobs the company planned to cut, but said that more details will be provided in a regulatory filing.

Vishay cut its fourth-quarter revenue view to $560 million to $590 million, from its previous outlook of $640 million to $670 million.

It expects gross margin to be lower than in the third quarter, when it was at 21.6 percent. The company had earlier forecast gross margin to be at third-quarter levels.

A slump in demand for chips amid the weak economy has prompted several chip makers to lower their sales outlook. Chip giants like Intel Corp (INTC.O) and Samsung Electronics Co Ltd (005930.KS) have forecast weak sales in the coming quarters.

Research firm Gartner slashed its semiconductor revenue forecast for 2009 to $219.2 billion on Tuesday, a drop of 16.3 percent, compared with a forecast of a 2.2 percent decline it gave just a month ago. [ID:nLG653582]

Vishay shares were down 10 cents at $3.87 in afternoon trade on the New York Stock Exchange. The stock has lost almost two-thirds of its value since the start of the year. (Additional reporting by S. John Tilak; Editing by Pratish Narayanan and Deepak Kannan)