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  (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.


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