NXP Semiconductors (formerly Philips Semiconductors) plans to cut 4,500 job worldwide, which amounts to 15 percent of its staff. NXP says it needs to reorganise due to a weak dollar and a declining market for chips. Its factory in Fishkill, New York, USA will be closed ultimately in 2009. Additionally, two other factories are planned to be closed by 2010: the ICN5part of the NXP facility in Nijmegen, Netherlands, and part of the ICH fab of the Hamburg facility, Germany. NXP's fab in Caen, France will be put on the market for sale. In the event that a buyer is not found this facility could be closed as well during 2009. In The Netherlands, the number of NXP employees will be reduced with 1300 in the next few years. Apart from the closure of facilities in Nijmegen, 250 jobs will also be cut at the NXP main office and R&D department in Eindhoven. The program is expected to result in annualized savings of USD 550 million (EUR 391 million). The restructuring cost will result in an estimated cash out of USD 800 million (EUR 568 million). NXP plans to focus on its Automotive, Identification, Home, and MultiMarket businesses and will consolidate the majority of its production to two higher capability European fabs: Nijmegen and Hamburg, and to SSMC in Singapore.

Source:Telecompaper