Rambus to cut 15 percent of staff in restructuring
SUNNYVALE, Calif. (AP) — Memory-chip designer Rambus Inc. plans to cut around 42 jobs, or 15 percent of its workforce, and reorganize its business in an effort to reduce costs.
The company will record $6 million in severance charges over the next two quarters. Excluding those costs and other investments in strategic business, Rambus hopes to save $30 million to $35 million from the job cuts, the company said late Wednesday.
Rambus said most of those savings will come from reduced general and administrative spending.
The company had 280 employees at the end of 2011. It said the job cuts will be complete in the fourth quarter of 2012.
Rambus is also reorganizing its business into three units: memory and interfaces, cryptography research, and lighting and display technologies.
The company was dealt a big setback in November, when a California jury denied Rambus billions of dollars in damages an antitrust case. Rambus alleged that chip-makers Micron Technology Inc. and Hynix Semiconductor Inc. conspired to fix prices of memory chips in order to hike the prices of products for which Rambus licenses the rights. Its stock price was cut in half immediately after the decision, and in total, shares are down 74 percent since then.
Rambus also posted disappointing second-quarter results in July. It reported lower revenue from contracts and royalties paid by companies that license its technology.
Shares of Rambus rose 7 cents to $4.83 in afternoon trading, a penny off its session high.