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Texas Instruments axes 1,700 jobs as part of broader cost-cutting effort

Processor chip manufacturer Texas Instruments is undergoing a corporate restructuring that will cut its global workforce by 4.8 per cent and is anticipated to cost $325 million (£205 million). The company-wide layoffs are expected to result in annual savings worth $450 million (£284 million).

The Dallas-based firm will eliminate 1,700 positions from its 35,000 strong labour force, it confirmed this week.

"These job reductions are something we do with a heavy heart because they impact people we care deeply about, we will work closely with all employees affected by these changes to provide a range of assistance related to compensation, benefits and job search," said Greg Delagi, TI's senior vice president of embedded processing.

The semiconductor supplier is also taking steps to move away from the highly competitive mobile sector in favour of the less investment-intensive industrial sector, where it plans to sell its OMAP processors for use in home appliances and cars.

"We have a great opportunity to reshape our OMAP processor and wireless connectivity product lines to concentrate on embedded markets," said Delagi.

"Momentum is already building with new embedded applications and a broad set of customers, and we are accelerating our efforts in these areas."

Texas Instruments is still expected to continue providing Amazon with processors for its current range of Kindle tablets but will not develop new iterations of the chip.