Employees of technology manufacturer Texas Instruments have some gloomy news to look forward to. The maker of digital signal processors announced that it would be shutting down two of its factories, which translates into the loss of up to 1000 jobs. The two factories, one in Texas and the other in Japan, have been in commission for 42 years and 32 years respectively. The company made this announcement as it made its earnings calls that indicated an improvement in earnings over the last quarter ending 2011.
The news buoyed the company’s shares 3% to add $1.11 value to the shares. This development comes after TI finished its acquisition of another chip maker, National Semiconductors for $6.5 billion and is seen as a means of shedding off some of the workforce TI inherited with the acquisition. The closure of the two factories will see TI make savings of $100 million every years although the company will have to part with $215 million in order to process the closures.
In a statement made by the chief executive Richard K. Templeton during the earnings call, he said they were anticipating better growth going into 2012 although they expected a slight slump in the first quarter owing to the costs of closing the two factories. The reason for this optimism is the better than normal demand they have seen for their products, something the company admits has also pleasantly surprised them.
