The job cuts represent about 5% of TI's staff, and they are part of a previously announced restructuring initiative aimed at cutting costs and increasing its presence in the burgeoning embedded device market. Shares of Texas Instruments (Fortune 500) rose about 1% in afterhours trading. ,
The Dallas-based company had made some headway in the smartphone market a few years ago. But recently the biggest mobile phone makers, including Samsung and Apple (Fortune 500) have opted to design their own chips for their respective Galaxy smartphones and iPhones. ,
Other mobile processor competitors, including Samsung, Qualcomm (Fortune 500) and , Nvidia ( have also had better success in the smartphone business. Even )Intel (Fortune 500) has made strides, signing recent deal with , Motorola (Fortune 500) to put its new mobile chips in future Motorola smartphones. ,
TI says it's time to reconsider its strategy, opting instead to embrace what many industry experts believe is the future of the mobile sector: embedded connectivity in everyday items, including appliances, cars and even clothing.
"We have a great opportunity to reshape our [mobile] processor and wireless connectivity product lines to concentrate on embedded markets," said Greg Delagi, head of TI's embedded processing division, in a statement. "These job reductions are something we do with a heavy heart because they impact people we care deeply about."
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