Job cuts for Christmas at CSR

Wireless technology and computer chip company CSR is getting out of the digital television system-on-a-chip (DTV SoC) business to focus on areas where it has a larger market presence.

The company said it will also be discontinuing investment in silicon tuners. As a result of pulling out of these markets, CSR expects to realise $60m of operating cost reductions on an annualised basis when taken in conjunction with other efficiency savings, and to incur an incremental $10m of restructuring costs by the end of the second quarter of 2012.

The company will continue to support its existing DTV SoC and silicon tuner products, but will stop developing new models in these areas; it will, however, continue to develop connectivity products, other home entertainment products and peripherals related to the DTV market. It does not expect a material impact on revenues for 2012 as a result of the announced actions.

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Joep van Beurden, chief executive officer of CSR, said the company is focusing its investment "where we have a strong position in platforms in the areas of voice & music, automotive infotainment, cameras, document imaging, gaming and Bluetooth low energy."

"We will also continue to invest in a range of products for attractive growth markets including handsets and computer peripherals," he added.

The workforce is set to contract sharply as a result of the decisions to refocus; the company expects to have around 2,400 personnel worldwide at the end of the second quarter 2012, down from 3,200 personnel at the end of September 2011.

CSR continues to expect fourth quarter 2011 revenues to be in line with previous guidance, in the range of $230m to $250m.

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