Cadence Design's ( CDN) Tality unit said it will no longer provide board-level, mechanical and packaging services for data and telecommunications equipment, and will instead focus on communications IC design and intellectual property used in wireline communications equipment.

The company said the action is intended to capitalize on what it expects will be an imminent recovery in the chip sector.

To facilitate the shift, the company plans to cut 200 jobs and take a $25 million restructuring charge in the first quarter.

Shares of CDN closed Friday at $23.09 ahead of the announcement.

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