Semtech Corp. said Wednesday that it is trimming its global workforce by 8 percent due to a decline in the demand for its chips by Korean smartphone makers. The Camarillo maker of analog and mixed-signal semiconductors said the reduction would “align operating expenses with business conditions and leverage recent infrastructure investments.” “Given our recent revenue decline driven primarily by weak Korean smartphone demand, we have made the very difficult decision to reduce our headcount and operating expenses across a majority of Semtech’s locations,” said Chief Executive Officer Mohan Maheswaran in a prepared statement. The move is projected to lower sales, general and administrative expenses by about $20 million annually. The company has about 1,450 workers, according to Yahoo Finance. The company expects to take a charge of $3.5 million during the second and third quarters of this fiscal year, largely to pay for termination benefits, including severance, which are expected to be settled in cash. Semtech lost $15.4 million in the fiscal fourth quarter ended Jan. 25 and another $142,000 in the first quarter ended April 26. The company said it would provide additional details on the charges when it reports its second quarter results in August. Shares closed down 45 cents, or more than 2 percent, to $18.41 o the Nasdaq.
