Chipmaker Transwitch to cut jobs in Bangalore, Delhi units
Nov 22 2012
Documents accessed by Financial Chronicle, state that during the nine months ended September 30, 2012, the Company recorded a net restructuring charge of approximately $1 million. The Company also implemented a restructuring plan in the second quarter of 2012 that included a workforce reduction of approximately 64 positions primarily in the Bangalore, New Delhi, Fremont, California, Shelton, Connecticut, and European centres.
The document reads, “The Company recorded restructuring charges of approximately $1.1 million related to employee termination benefits and approximately $0.2 million related to facilities costs. These new restructuring charges were partially offset by approximately $0.3 million of a restructuring benefit that was an adjustment to a prior restructuring charge for a facility lease obligation in Shelton, Connecticut”.
It further adds, “During the three and nine months ended September 30, 2011, the Company recorded net restructuring charges of $0.9 million and $1.4 million, respectively. In the third quarter of 2011, the company implemented a restructuring plan that included a workforce reduction of approximately 39 positions primarily in the Company’s Shelton, Connecticut, Fremont, California, New Delhi, India and Bangalore, India locations. The company also implemented a restructuring plan in the first quarter of 2011 that included a workforce reduction of approximately 26 positions primarily in the company’s Fremont, California, New Delhi, India and Bangalore, India locations. The restructuring charges are primarily for employee termination benefits”.
During the September quarter, the company continued to reduce operating expenses. Its operating expenses, excluding restructuring charges, fell from $7.5 million in the second quarter of 2012 to $6.0 million in third quarter of 2012. The company, said, “All product and software development programs related to our telecom product lines were cancelled and we redeployed all of our remaining research and development resources in India and Israel to our interoperable connectivity solutions for consumer electronic and personal computer markets”.