Texas Instruments has announced that the company is cutting 1,700 jobs as part of a business restructuring move. The company says it's shifting away from mobile chips because it has become too resource and investment intensive to be competitive in this market. Cost reductions include the elimination of about 1,700 jobs worldwide. As a result of these actions, the company expects annualized savings of about $450 million by the end of 2013. Texas Instruments has been under pressure in wireless, where it has lost ground to their archrival Qualcomm and the smartphone makers Apple and Samsung Electronics who have been developing their own chips instead of buying them from a supplier like TI. It looks like TI OMAP processors in smartphones and tablets will soon come to an end once existing products clear the channel.
"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," said Greg Delagi, senior vice president of Embedded Processing. "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."