Applied Micro Circuits Corporation (AMCC) recently announced that it would reduce its workforce by 11% as part of its restructuring plan. Management expects to incur an employee severance charge of approximately $1.3 million – $1.7 million in 2010.
Management had earlier chalked out a restructuring plan to reduce costs and improve operational efficiency by integrating its global operations. This integration is expected to reduce operating expenses by taking advantage of a global cost structure. Management expects that the restructuring plan will reduce its ongoing net operating expenses by approximately $1.5 million annually.
AppliedMicro had earlier reduced its workforce by 17%. The company also implemented a corporate-wide reduction of consultants, contractors and internal personnel. These actions were part of the company’s planned reduction of its operating expenses.
Meanwhile, the company changed its new name to AppliedMicro from Applied Micro Circuits Corporation. Management believes that the new name reflects the company’s drive for breakthrough energy efficiency and cost optimized semiconductor devices.
In recent times, the company has undergone a number of management and product transitions and we believe that it should soon be positioned to enter a period of sustainable revenue growth as new products move in for production at key OEMs and industry supply chain challenges get ironed out with signs of economic recovery.
Headquartered in San Diego, California, AppliedMicro is a leading provider of high-bandwidth integrated circuits (ICs) for optical telecom networks.
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