Applied Micro to Cut 4% of Workforce

SAN FRANCISCO -- Applied Micro Circuits(AMCC Quote) is handing out the pink slips as it strives to change its loss-making ways.

The Sunnyvale, Calif. chipmaker said in a regulatory filing Thursday that its board has approved a plan to reorganize the company's operations and slash 4% of its workforce, which totaled 619 employees as of March 31.

Applied Micro said the move will save it roughly $2.8 million a year in operating expenses, which will be phased in gradually over the next two quarters. The company expects to take a charge of between $600,000 and $900,000 for the remainder of its fiscal year to cover employee severances.

Analysts polled by Thomson Financial expect Applied Micro to report a loss of 1 cent a share on sales of $56.8 million in the current quarter.

Shares of Applied Micro, which finished Thursday's regular session down 3 cents at $3.06, were unchanged in extended trading.