Menu
NXP plans to cut 700 to 900 jobs worldwide

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


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesprocessorslayoffsComponentsNXP Semiconductors

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments