US chip maker Entropic has confirmed that it is reducing its headcount by around 70 employees, equivalent to roughly 10% of its global workforce, and plans to reinvest the US$ 9mn annual cost savings generated in the development of new products and programmes.
These redundancies are expected to help Entropic restructure in order to focus on key vertical markets, streamline its global manufacturing resources, and consolidate several engineering activities to drive efficiencies. The majority of the US$ 1.7mn pre-tax restructuring costs incurred are expected to affect results for the second quarter of this year.
“The restructuring activities are designed to maximise engineering efficiencies, optimise business operations and align our investments with key vertical market requirements,” said Patrick Henry, president and chief executive officer, Entropic. “It also gives us an opportunity to increase investment in strategic areas with more long-term growth potential, including analog mixed-signal and software.”