NEW YORK (TheStreet) -- Shares of Synaptics  (SYNA - Get Report) are plummeting by 10.56% to $54.11 on heavy trading volume Friday afternoon, after the company stated in an SEC filing that it will eliminate about 9% of its workforce as part of cost-cutting measures intended to align its cost structure with its reduced revenue levels.

The company expects to incur charges between $10 million and $11 million from the layoffs and another $3 million to $4 million from lease cancellation and related costs, according to the filing. 

Synaptics expects to recognize the charges in the 2016 fourth quarter and in fiscal 2017.

Dougherty & Co. believes that the changes indicate heightened competition from other suppliers in Asia and are part of a shift toward lower-cost centers overseas, Barron's reports.

"We note management has an operating margin target of mid-to-high teens," the firm added. "Our best guess is that these cuts are being made in a way that will allow the company to hit those targets on the now lower revenue."

But Cowen & Co. defended Synaptics, writing that the cost reductions were "generally noted" on the March-quarter conference call. They don't signal a new structural change in the business or customer base. 

About 3.64 million shares of the touch-screen controller component maker have been traded so far today, well above its average trading volume of roughly 748,312 shares per day.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Synaptics' strengths such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: SYNA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.