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National Semiconductor Cutting 1,725 JobsPOSTED March 11, 2009 SANTA CLARA - National Semiconductor Corp. reported sales of $292 million and net income of $21.1 million for the third quarter of fiscal 2009, which ended March 1, 2009. Compared to last year, sales decreased approximately 36 percent from the $453 million reported in the third quarter of fiscal 2008. The chip-maker announced a series of cost-cutting moves that will eliminate up to 1,725 jobs or 26% of its workforce. In response to economic conditions and related business levels, National will shift more of its R&D investments towards new and emerging growth opportunities. As part of the plan, the company will eliminate approximately 850 positions worldwide in product lines, sales and marketing, manufacturing and support functions. Notification to affected employees will begin immediately. As part of the manufacturing consolidation plan, the company will close its assembly and test plant in Suzhou, China and its wafer fabrication plant in Arlington, TX. The closures will occur in phases over several quarters, eventually resulting in the elimination of an additional 875 positions. The volume currently being supported by these two facilities will be transferred primarily to other National locations. After the consolidation, National will have three manufacturing facilities: wafer fabrication plants in South Portland, Maine and Greenock, Scotland and an assembly and test facility in Melaka, Malaysia. In total, for all of the actions discussed above, it is estimated that the company will ultimately incur between $160 million and $180 million in charges, consisting of severances, asset impairments and other exit-related costs, of which $130 million to $145 million would likely be recorded in the fourth quarter of fiscal 2009 and the remainder in ensuing quarters. National currently employs about 6,500 people worldwide, and these actions will result in the elimination of 26 percent of the company’s workforce. "The worldwide recession has impacted National’s business as demand has fallen considerably," said Brian Halla, chairman and CEO. "However, the actions we announced today will help us remain competitive as we continue to focus on growing markets that can benefit from our new energy-efficiency initiatives."
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