SAN FRANCISCO -- Chip maker CSR plc said Monday (December12) it would discontinue investment in the digital TV and silicon tuner productlines it recently acquired when it bought Zoran Corp and lay off about 800employees by the end of the second quarter of 2012.
CSR (Cambridge, UK) said it expects to save about$60 million per year as a result of these and other changes. The companyexpects to take a charge of about $10 million for restructuring by the end ofthe second quarter of 2012.
CSR said it is making the cuts to sharpen thecompany's focus on areas where it has leadership positions and the ability todeliver differentiated platforms and products. The company said it wouldcontinue to support and deliver products to customers in these areas, and willcontinue to develop connectivity, other home entertainment products and peripheralsrelated to the DTV market.
Many observers expected CSR to cut portions ofZoran, the image processing chip specialist it acquired earlier this year forabout $484 million. CSR executives have articulated a vision for the company tobecome a diversified platform provider and avoid commoditization at allcosts.
"We continue to take a disciplined approach tocapital allocation and cost control," said Joep van Beurden, CEO of CSR,in a statement. Beurden said CSR would focus investments in areas where thecompany has a strong position, including the areas of voice and music,automotive infotainment, cameras, document imaging, gaming and Bluetooth lowenergy devices.
"We will also continue to invest in a range ofproducts for attractive growth markets including handsets and computerperipherals," Beurden said.
CSR said it expects to have about 2,400 employees atthe end of the second quarter of 2012, down from about 3,200 employees at theend of September. The company said it continues to expect fourth quarterrevenue to be between $230 million and $250 million.
Thisstory was originally posted by EETimes.
CSR guts Zoran DTV chip business in reorg
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