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Magma to trim down workforce

Posted: 06 Oct 2008     Print Version  Bookmark and Share

Keywords:restructure  workforce  layoffs 

EDA vendor Magma Design Automation Inc. announced its plans to restructure its operations and trim down its workforce by up to 10 per cent.

Magma said it expects to record a one-time charge during the second quarter of fiscal 2009 of Rs.10.75 crore ($2.5 million) to Rs.15.05 crore ($3.5 million) to cover personnel-related costs, including severance benefits and other costs.

A spokesperson for Magma could not provide a specific number for the planned layoffs, but said it would be 10 per cent or less of the company's total workforce. Magma's total head count at the close of its most recent quarter was 1,011.

The move is part of a plan initiated in May 2008 to restructure its operations, Magma said. The goal of the restructuring is to reduce costs and focus on key product areas, the company said.

In a statement, Roy Jewell, Magma president and chief operating officer, said the company is adusting expenses to be consistent with new revenue expectations and restore profitability on a non-GAAP basis by the end of the company's fiscal year. Magma on Aug. 28 cut revenue guidance for the current fiscal year by about 30 per cent.

"These changes put our focus on product areas that stand to drive our greatest growth,' Jewell said.

-Dylan McGrath
EE Times





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