Cypress to Cut About 500 Jobs

Cypress Semiconductor Corp. plans to cut about 500 jobs as part of its latest cost-cutting plan, the company disclosed Monday.

The San Jose, Calif.-based company, which as of Jan. 3 had about 6,300 workers, estimated the job cuts would cost it $40 million to $50 million and said it would record the bulk of the charges in the third and fourth quarters.

The latest cuts, about 8% of the workforce, come about a month after Cypress promoted Hassane El-Khoury to chief executive, replacing company founder T.J. Rodgers, who held the top post for more than three decades and is regarded as one of the most prominent leaders in the microchip industry.

Mr. El-Khoury joined Cypress in 2007 after years at Continental Automotive Systems Inc., one of the leading suppliers of electronic products for car makers. At Cypress, Mr. El-Khoury has helped build the automotive chip business, which now accounts for about one-third of its sales.

Cypress, which is trying to strengthen its position in emerging trends, such as the so-called Internet of Things, reported its loss for the first half of the year nearly doubled to $623.3 million though revenue rose 25% to $869.1 million.

As of July 3, the most recent results available, Cypress reported $188.3 million in cash and $833.8 million in debt.

Shares closed Monday at $12, up 22% this year.

Write to Maria Armental at [e-mail] and Don Clark at [e-mail]

(END) Dow Jones Newswires

October 03, 2016 18:05 ET (22:05 GMT)

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