It plans to close its manufacturing facility in Boeblingen, Germany by the end of 2007 at the cost of 550 jobs. Production will be transferred to its plants in Nijmegen and Hamburg. It justified the closure on low production, which was reduced by an additional 30% as a result of the recent withdrawal from two underperforming businesses.
Eindhoven, Netherlands-based NXP also plans to restructure its back-end manufacturing operations in Cabuyao, the Philippines. It will move its system-in-package solutions production line from Cabuyao to Calamba and discontinue its power amplifier and front-end-module production.
While 200 employees will transfer to Calamba, 400 full-time jobs will be lost. It said the changes would not affect the other NXP activities currently undertaken at Cabuyao.
The moves are part of the company’s Business Renewal strategy, designed to increase competitiveness, operational effectiveness, and profitability. NXP currently has 37,000 employees on its payroll.
