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Print 14 comment(s) - last by ClownPuncher.. on Nov 16 at 3:43 PM


  (Source: cdn.turner.com)
The company expects to save about $450 million by the end of 2013 with the 1,700 eliminated jobs

Texas Instruments is in the midst of some restructuring, as it cuts over 1,000 jobs and switches its focus from tablet/smartphone chips to those for cars and appliances.

Texas Instruments cut 1,700 jobs, which is equal to 5 percent of its global workforce. The company currently has 35,000 employees around the world, and expects to save about $450 million by the end of 2013 with the 1,700 eliminated jobs.

In addition to the job cuts, Texas Instruments is shifting its chip-making efforts from tablets and smartphones to cars and home appliances due to the competitive mobile device market.

Large device makers like Apple and Samsung have been making their own chips, and currently only Amazon's Kindle Fire tablets use Texas Instruments' processor unit called OMAP.

While Texas Instruments said it will continue selling OMAP processors to Amazon for its Kindle Fire tablets, the company wants to focus more on cars and appliances.

However, there's been talk that Amazon is looking to purchase Texas Instruments' mobile chip division for itself. This could allow Amazon to take control over the design and performance of the chips that run its products.

Source: Reuters



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Average employee worth
By gamerk2 on 11/15/2012 2:22:28 PM , Rating: 1
According to the math, an average TI employee is worth ~$265,000 per year. Given how its unlikely a given employee generates that much in revenue, the cuts make financial sense for TI.




RE: Average employee worth
By simsony on 11/15/2012 3:14:56 PM , Rating: 2
Depends on the department. It is not an unreasonable figure at all for engineering, r&d and sales for non low cost regions.

The figure look suspiciously like the French numbers.


RE: Average employee worth
By jak3676 on 11/15/2012 4:04:29 PM , Rating: 2
You can't just divide 450M by 1700 and expect to get a usable cost per employee. They're probably saving quite a bit in other overhead costs too. Salary, taxes, pensions, healthcare, IT support, HR oversight, training, etc. With cuts's that big, they're probably closing entire buildings so they're saving costs there too. By the time you add it all up, direct salary is far less than 1/2 the cost of an employee.


RE: Average employee worth
By DailyKenny on 11/15/2012 4:13:55 PM , Rating: 2
not everyone makes the same pay at TI. Its very weighted.


RE: Average employee worth
By Gondor on 11/16/2012 8:19:47 AM , Rating: 2
quote:
The company currently has 35,000 employees around the world, and expects to save about $450 million by the end of 2013 with the 1,700 eliminated jobs.


I just had the most brilliant idea ever: cut 100% of the workforce and save about $9 billion instead !!! Better yet, cut 200% and save $18 billion. What could possibly go wrong ?

I'm so incredibly smart I deserve a CEO position and a golden parachute package ... right ???


It is so trivial to fling the numbers around when one isn't among the unfortunate bunch who are getting thrown out ... while the management cadre is going to remain glued to the honey pot, unaffected, perhaps even get rewarded for their awesome leadership.


RE: Average employee worth
By tjcinnamon on 11/16/2012 12:04:03 PM , Rating: 2
quote:
According to the math, an average TI employee is worth ~$265,000 per year. Given how its unlikely a given employee generates that much in revenue, the cuts make financial sense for TI.


You have to factor in benefits: Health, Life, Dental, SIMPLE Match, Vacation. Also, Taxes: FICA, Unemployment Comp, Work Comp.

Not to mention extra management, space, equipment and licensing costs that is required to house that many employees. You can pretty much add 20 to 30% on to your hourly or salaried wage for the actual cost of an employee.


RE: Average employee worth
By tjcinnamon on 11/16/2012 12:05:54 PM , Rating: 2
Also, bonuses. Who knows how big those are.


RE: Average employee worth
By ClownPuncher on 11/16/2012 3:43:27 PM , Rating: 2
Eh, even with all benefits factored in and all of that, I make much much less than that per year, though I make my company quite a bit more than that.


Sign of the times
By Ammohunt on 11/15/2012 3:42:22 PM , Rating: 2
Much more of this to come now that the elections are over.




RE: Sign of the times
By TheJian on 11/16/2012 2:25:07 AM , Rating: 3
Well, to be fair, it's only happening because we elected the ANTI-BUSINESS guy (hell, anti america, he wants us broke so we end up UN ruled, look at the gun treaty coming March18-23 I think thats the dates).

With the other guy elected, we'd be swimming in oil/coal shortly and put people back to work not only there, but also across the board as every business out there would be of the firm belief the govt was no longer out to get them. Obama will continue the war on coal, stop drilling on any PUBLIC lands and continue this ethanol crap for his friends.

Not to mention the EPA would slowly be reduced to nothing if not just killed outright by Romney. Boom, corn problem fixed (feed problem) and suddenly we all have to spend less on groceries. Drilling like crazy and using our coal lowers gas etc prices and again we all have more money.

DAMN the environment/animals (if anyone can actually prove we have anything to do with it at all climate wise), we need jobs and cheap gas/cheap food. Anything less=more layoffs just as you said. The list of companies set to do this in Jan/Feb is amazing (5000 companies!). Say hello to 20% unemployment with the real # being around 25-30, in 3-4 months. I don't give a rats A$$ about some animal about to go extinct either. We are about to have our economy go extinct.


RE: Sign of the times
By drlumen on 11/16/12, Rating: 0
Broadening the OMAP market
By othercents on 11/15/2012 1:20:00 PM , Rating: 2
Texas Instruments is broadening the OMAP market instead of being focused on the mobile market they will be more focused on the embedded applications market. This won't mean you couldn't use their processors to run in the mobile market, but they probably won't be looking at the high performance side that we expect from NVidia.




Logical
By Slaimus on 11/15/2012 2:25:15 PM , Rating: 2
TI ended its 32nm process development a few years ago, so they are behind on OMAP5 manufacturing since its manufacturing needs to be outsourced. Once they are a year behind in the mobile space, it will be very hard to catch up.




MS next?
By Pirks on 11/15/2012 3:50:22 PM , Rating: 2
Apple got its chips, Samsung too, why MS is waiting to snatch up Qalcomm huh? It'll be too late! They should act right now, who's gonna provide them with best chips for their Surface tablets and phones? Qualcomm? With chips available to anyone meaning that MS can't differentiate like Apple and Samsung do? C'mon Ballmer, don't fall asleep again, act fast!




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