Xilinx cutting 200 jobs, or 6 percent of work force; executives taking pay cuts
Xilinx, the San Jose maker of programmable chips, said Wednesday it expects to cut 200 jobs, or about six percent of its total workforce. The move is expected to cost anywhere from $11 to $13 million in charges during its current quarter, mostly to cover severance pay, and estimates that it will save the company somewhere between $4 and $5 million per quarter.
The company is implementing other short-term cost-savings measures, including cuts to executive salaries of from 10 to 20 percent, beginning May 1. Xilinx Chief Executive Moshe Gavrielov will have his base salary of $700,000 a year reduced 20 percent to $560,000. Chief Financial Officer Jon Olson will have his pay cut 15 percent, from $460,000 to $390,000.
“Over the longer term,” the company said it expects “to implement further supply chain efficiencies resulting in additional restructuring charges totaling approximately $10 million over the September, December and March quarters of fiscal 2010. These efficiencies are expected to result in changes to the structure and location of certain global operations, which are expected to provide the Company with further cost savings over time.”
