NXP plans to cut 700 to 900 jobs worldwide

The bad economy and stiffer competition are the main reasons to cut jobs, NXP said

NXP Semiconductors is planning to cut 700 to 900 jobs as part of a reorganization to reduce costs of support services, the company said on Monday.

"The job cuts are part of a larger reorganization," said Guido Dierick, country manager of NXP the Netherlands. Most of the job cuts will come in Western Europe but some jobs will also be cut in the U.S. and Asia, he said.

Dutch IT news site Tweakers first reported the news.

Jobs will be cut in various departments such as the IT, supply chain and planning and administration units, among others, Dierick said. "We took a bottom-up approach," he said. Department heads were asked to review their departments to determine if they could cut any jobs.

"Some forced redundancies will be unavoidable," Dierick said. But NXP expects that some people will leave the company voluntarily. There are also some pensions coming up and in some cases temporary contracts will not be extended, he said.

Because NXP still has to discuss the plans with various European works councils, the number of jobs that will be cut is not definite yet, he said.

There will be no jobs lost in the research and development (R&D) department, nor will factory jobs be cut, Dierick said. NXP is planning to invest in R&D and those funds are aimed to strengthen the development of NFC (Near Field Communication) technology and chips meant for use in passports and drivers licenses, he said.

The poor global economy and increasingly stiff competition are the main reasons for the cuts, Dierick said. These factors are putting pressure on pricing, and lower prices are shrinking margins on products, he said.

While NXP plans to cut jobs the company is also planning to add 180 positions, mainly in R&D, said Dierick.

As part of the process however, NXP is also planning to cut back R&D in "some areas," Dierick said, who declined to comment on which areas that would be. NXP plans to reveal more details within three weeks when it announces its financial results.

Loek is Amsterdam Correspondent and covers online privacy, intellectual property, open-source and online payment issues for the IDG News Service. Follow him on Twitter at @loekessers or email tips and comments to loek_essers@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issueslayoffsComponentsprocessorsNXP Semiconductors

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Loek Essers

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?