As we reported last week, all was not well at National Semiconductor Corp, with many of its newly-acquired Cyrix employees sending resumes to Hal Computer Systems Ltd (CI No 3,391). Now NatSemi has confirmed that it will cut its workforce by 1,400, or about 10% of the total. The job cuts will center primarily on the company’s Santa Clara headquarters and include 560 employees affected by the previously announced closure of the company’s older 5- and 6-inch wafer manufacturing facilities there. NatSemi, facing a decrease in new orders, had previously announced it is likely facing a loss for its current fourth quarter. Now it most certainly is, as the restructuring will result in a one-time charge for the quarter of between $60m to $70m pre-tax, equivalent to $0.27 to $0.32 in quarterly after-tax earnings per share. The charge consists of $25m for severance and lease terminations plus $10m for asset write-offs related to discontinued product development programs. It also includes about $10m for additional asset impairment for the Arlington, Texas 0.65-micron fab, plus a roughly $20m write-down to fair value of facilities and equipment to be disposed of in the Santa Clara 5-, 6- and 8-inch fabrication lines.
