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4,500 jobs at risk as NXP restructures
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NXP Semiconductor has announced a major restructuring drive due to poor business conditions that include a weak U.S. dollar and the recent merger of its wireless business into a joint venture with STMicroelectronics. Four production fabs are to closed with production consolidated at three others as well as job losses announced in R&D and support operations that, combined, will affect 4,500 employees globally, the company said.
The restructuring will cost the company $800 million but save the company $550 million in wages with annualized operating savings of $250 million. The company said that further details will be communicated on a local country basis as part of the consultation process with employee representatives and unions. Where possible the company hopes to move people into different positions within the company. NXP has 31,000 employees working in more than 20 countries.