Cirrus Logic (NASDAQ:CRUS) started Thursday in the red, after the company said in a regulatory filing that it is cutting its global workforce by about 5%, citing “overall market conditions.”
The company, out of Austin, Texas, said it has laid off 124 employees, or 12% of its workforce, in its fourth quarter, which ends March 29. The company, which provides chip solutions for consumer entertainment electronics, said it expects to take a charge of $1.2 million in the quarter for the layoffs.
Lower revenue expectations prompted the job cuts, which affected employees world-wide from various business functions, according to the company's quarterly report, filed late Tuesday with the Securities and Exchange Commission. Cirrus Logic said it had 1,024 employees at the end of its third quarter on Dec. 28.
The company cut about 150 jobs during that quarter. As part of fourth-quarter restructuring activities, the company closed the wireless product line it acquired in October 2001 along with an office in El Dorado Hills, Calif., that focused solely on that product line. As of Dec. 28, Cirrus had $9.7 million in intangible assets from the acquisition.
The company said it is evaluating its options for those assets, and it may record an impairment charge for some or all of the value of the assets during the fourth quarter. Cirrus Logic reiterated in the filing that it expects fourth-quarter revenue of $52 million to $56 million. The company reported third-quarter revenue of $60.5 million. The company said it expects to end the fourth quarter with $122 million to $127 million in cash.
CRUS shares staggered $2.12, or 2.6%, to open Thursday at $80.70.
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