Cadence to layoff 225 employees in 2009

cadence-logo1Cadence Design Systems, the San Jose supplier of electronic design automation software, will  eliminate the equivalent of about 225 full-time employees between now and the end of the year. Based on the 4,900 employees the company reported having at the end of 2008, the layoffs represent about 5 percent of Cadence’s total workforce.

The action is expected to cost between $20 million and $25 million, most of it in cash charges for employee-related costs, and to save about $30 million in annual operating costs, after taking into account “additional investments planned for areas of critical importance to Cadence’s customers.”

“Our top priorities are serving our customers and enhancing value for our shareholders,” said Cadence Chief Executive Lip-Bu Tan in a statement. “The measures we are announcing today streamline our operations as we simultaneously invest to enhance technology leadership in key growth areas. We are confident that the changes we are implementing will make Cadence a stronger, more focused company as we emerge from the current economic downturn.”

Last month, the company announced a 20 percent cut in Tan’s salary while other top executives and the company’s board of directors took 10 percent cuts in their salary and retainer fees, respectively.

 

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