Intersil Corp, a manufacturer of analog, mixed-signal and power management semiconductors, has announced it will lay off 18 percent of its workforce in a restructuring effort. The move is targeted at prioritizing the company's sales and development efforts, strengthening financial performance and improving cash flow, the company reported.
The restructuring plan will be substantially completed during the first quarter of 2013 and is expected to reduce annual operating expenses by approximately $30 million. A restructuring charge of approximately $15 million for severance related benefits is expected during the first quarter of 2013.
"Today's market requires us to sharpen our focus on core strengths and markets where we can offer superior value to our customers," said Jim Diller, interim president and CEO.
Cost savings are expected to be achieved through reductions in work force and increased focus on new product development efforts. In its most recent quarter, ended December 28, 2012, Intersil reported revenue of $137.5 million; and an operating loss, net loss and loss per share for the quarter of $4.1 million, $21.8 million and $0.17 per share, respectively.