* Job cuts represent almost 5 pct of workforce
* TI sees charge of $325 mln, annual savings of $450 mln
* Shares rise almost 1 pct
NEW YORK, Nov 14 Texas Instruments is
eliminating 1,700 jobs or almost 5 percent of its global
workforce to cut costs in its wireless business as it moves away
from making smartphone application chips, sending its shares up
almost one percent in late trade.
The Dallas, Texas based chipmaker had said in September that
it would halt costly investments in its OMAP mobile application
chip business, which supports features like video, for tablet
computers and smartphones.
TI has been under pressure in wireless, where it has lost
ground to rival Qualcomm Inc and the world's biggest
smartphone makers Apple Inc and Samsung Electronics Co
Ltd who have been developing their own chips instead
of buying them from a supplier like TI.
Instead of pursuing the phone market TI is trying to sell
OMAP in a broader market that requires less investments and
includes industrial clients like carmakers.
TI said on it expects to take charges of about $325 million
related to the job cuts and other cost reduction measures, most
of which will be accounted for in the current quarter. Its
previously announced financial targets for the fourth quarter do
not include these costs, TI said.
The company, which has 35,000 employees around the world,
expects annualized savings of about $450 million by the end of
2013 from the action.
TI shares rose to $29 in late trade after closing down 2
percent at $28.76 in the regular Nasdaq session.