Zilog Inc is to cut yet more staff as the result of a decision to close its chip assembly operations in the Philippines and outsource the work. The cut will eliminate 384 jobs, although Zilog says it will keep open its Philippine-based final testing operations, where 400 people are employed. The magnitude of potential future investments dictated that we look for smarter ways to handle package assembly, said the company in a statement. Zilog, twenty-five years old this year, has concentrated its activities on embedded systems, communications and home electronics devices since president and CEO Curtis Crawford joined the company from Lucent Technologies Inc last year (CI No 3,321). Since then it has gone through two major restructurings, and now employs 1,200 people. Zilog has been privately-held since private investment partnership Texas Pacific Group agreed to acquire the company in 1997 (CI No 3,208), a transaction that wasn’t completed until March 1998. But Zilog still reports its figures, and its fourth quarter and year-end results are due over the next few weeks. Nine-month net losses, reported last October, were $70.4m, down from profits last time of $11.5m on revenues down 25.5% at $150.6m. 1997 revenues were $261.1m.
