NXP to lose 4500 jobs in restructure
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NXP has announced plans to lose 4500 jobs as part of what it calls a ‘redesign program’ created to return the company to a ‘healthy financial situation’ and to position it for future growth.
Chief executive Frans van Houten, pictured, noted: “These steps have not been taken lightly. The semiconductor market remains flat against a weak economic environment. There are tough market conditions and we have had to deal with challenging currency problems.”
NXP’s wireless joint venture with STMicroelectronics has proved to be the trigger for the move. “It’s left us a smaller company with a high cost base,” van Houten commented.
He claimed the wireless element of NXP required a high degree of R&D investment. “Now we’re no longer in this market, we can adjust central R&D program significantly whilst focusing on our four remaining business units.”
Nevertheless, van Houten claims NXP will continue to invest 16 to 17% of its sales revenues in R&D.
NXP will now focus on the automotive, identification, home, and multimarket sectors.
Manufacturing is also affected by the cutbacks. According to van Houten, NXP’s fabs are under loaded, so four will be shut. It will then concentrate production in two European fabs – Hamburg and Nijmegen – and with SSMC in Singapore. This will bring fab loading to more than 90%, van Houten noted.
