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Transmeta: Many Firings

The chip company fires 39% of its staff and plans more layoffs.
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Transmeta (TMTA) cut 75 jobs, or 39% of its workforce, as the chip company said it will focus on developing and licensing intellectual property.

The Santa Clara, Calif., company said it expects to fire an added 25 to 55 people in coming quarters as it completes existing engineering services work.

"Transmeta has a long history of pioneering innovative technologies that have resulted in a very strong intellectual property portfolio," said CEO Lester Crudele. "After a critical evaluation of all our lines of businesses, we have decided that IP development and licensing will be our core business activity going forward. We continue to believe that this is the best way for us to deliver our technology to the market and monetize our investments. Therefore, we have initiated a restructuring plan to re-align our headcount and expenses accordingly."

Transmeta expects restructuring charges in the range of $11 million to $14 million, mostly in the first quarter. The company expects the cuts to save $17 million to $23 million on an annualized basis.

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Shares fell 13 cents to 90 cents.