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TI Embedded cuts?

SourceTwo
Expert 2355 points

Hello TI,

I am concerned after reading this mornings news: http://www.manufacturing.net/news/2014/01/texas-instruments-cutting-1100-jobs-4q-profit-up?

Can you offer comment on the impact of these cuts with regard to Tiva devices and future development?  I hope those of you supporting this forum will not be affected personally!  Thank you.

Regards,

Dave

  • 0
    TI__Intellectual 1955 points

    Hi Dave - the support for Tiva products remains unchanged, so if you have questions or need help just let us know.

  • 0 in reply to nancy!
    Expert 2355 points

    Hi Nancy,

    Thank you for your response.

    Can you discuss whether future emphasis on Tiva will be impacted?  Or, perhaps elaborate on which of TI's devices/device families WILL be impacted?  As you must know, we're still licking our wounds from the Stellaris debacle and can legitimately hope for some reassurance...

    Thank you for anything you can offer.

    Regards,

    Dave

  • 0 in reply to SourceTwo
    TI__Intellectual 1955 points

    Hi Dave – as mentioned in the earnings release, the company is not exiting any markets or discontinuing any existing products. 

    Thanks,

    Nancy

  • 0 in reply to nancy!
    Guru 86745 points

    Bad news for the people working at TI manufacturing and assembly.

  • 0 in reply to nancy!
    Guru 27285 points

    nancy! said:
    as mentioned in the earnings release, the company is not exiting any markets or discontinuing any existing products. 

     Hi Nancy, not exiting but cutting resource, from article I intended this focused on Smart phone chips, so can be OMAP and RF parts?

     Commercial driven hiring and firing is not the best for technical people treated as number and associated money value of product nor skill or know how.

  • 0 in reply to Roberto Romano
    Expert 1830 points

    Here's my summary of the news:

    1) "Texas Instruments ... will cut 1,100 jobs worldwide, about 3 percent of its workforce"

    2) "The company said the cuts in its embedded processing unit and in Japan will result in $130 million in annual savings by the end of 2014. The job cuts are in the U.S., India and Japan."

    Now the question is, what percentage of Texas Instruments is the embedded processing unit? For instance, if the embedded processing unit has 6% of Texas Instruments employees, the news would mean that the embedded processing unit would be cut in half (a big deal). If the embedded processing unit has 90% of Texas Instruments employees, the news would mean than the embedded processing unit would be cut by only ~3% (no big deal). Of course, the actual numbers lie somewhere in between.

    Given that the embedded processing unit generates 19.9% of Texas Instrument's revenue, the first order approximation is that 15% of the embedded processing unit's employees will go. That's a big hit! So which microcontrollers will loose emphasis. Hopefully not the fledgling Tiva!

    BTW, the news release states "Texas Instruments has been reshaping its business, paring back its wireless unit as its biggest smartphone and tablet customers develop their own chips. It is shifting its focus to industrial and automotive customers", but this is the past, and not the planned 3% cut.