Texas Instruments(TI) emerged as a key chip player in the mobile arena a few years ago. However, the company has had a few setbacks as off-the-shelf processors become undesirable for mobile vendors. As a result, TI has been contemplating a move away from the mobile industry and as part of that, has announced the elimination of 1700 jobs.
Only a while ago, TI had been really well due to its lucrative deals with different mobile vendors who were using its chips to fuel up their smartphones and tablets. However, mobile vendors have increasingly taken a liking to start creating either their own chips or go with the market standards.
This has led to a rather diminished space for TI in the mobile market. TI tried to sustain itself for a while but it is becoming increasingly harder for the company. As a result, TI has decided to shift its focus away from the volatile mobile market.
Commenting on this new strategy, the senior vice president of Embedded Processing at TI, Greg Delagi said, “We have a great opportunity to reshape our OMAP processor and wireless connectivity product lines to concentrate on embedded markets. Momentum is already building with new embedded applications and a broad set of customers, and we are accelerating our efforts in these areas.”
Delagi further stated, “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.”
As a result of these job cuts and other measures, TI is hoping to save up to $450 million annually by the year 2013.