Chipmakers Cypress Semiconductor Corp. and Spansion Inc. completed their $5 billion all-stock merger ahead of schedule. An unconfirmed report by the San Jose Mercury News indicates that the merged entity will lay off about 1,600 workers worldwide.
The Mercury News cited a leaked internal memo that said the job reductions would be equally split between the companies. A Cypress spokesman acknowledged that the memo was authentic, but declined to comment further, the report said.
The two companies issued a statement March 12 indicating that the merger had closed ahead of schedule. The announcement stated that the merger is expected to achieve more than $135 million in cost synergies per year, but did not outline any job reductions.
Cypress (San Jose, Calif.) and Spansion (Sunnyvale, Calif.) announced the proposed merger in December 2014. The merged company, which will go by Cypress Semiconductor, is projected to be the third-ranked supplier of memories and microcontrollers to the automotive market.
A reduction of 1,600 jobs by the new Cypress would represent a workforce reduction of roughly 20 percent of Cypress and Spansion employees, according to the Mercury News report.
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