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LSI Corporation has identified further cost savings with its merger with Agere Systems, which will mean the loss of approximately 900 or about 13 percent of its non-production workforce across all businesses and regions, the company has said.

LSI is struggling to be profitable and the layoffs are intended to assist the company in reducing operating expenses to between US$255 million and US$265 million in the third quarter and to between US$245 million and US$255 million in the fourth quarter of 2007.
 
"We are accelerating our timetable for aligning the resources of the new LSI with market opportunities and focusing on those markets where we possess leading technology and sustainable competitive advantages," said Abhi Talwalkar, LSI president and CEO. "Today's actions will position the company to improve our gross margins in our semiconductor business and to grow profitably in a competitive, fast-changing market."