Applied Micro Circuits (AMCC) plans to cut operating expenses by consolidating facilities and cutting about 20% of its work force.
The company expects to complete the restructuring plan by the end of the current fiscal year in March and will reduce costs by about $6 million to $8 million beginning in April.
As part of its restructuring plan, the company will close facilities in Israel and will consolidate other facilities. Product development and customer support activities currently based in Israel will be consolidated into other AMCC locations. The actions are expected to affect about 150 employees.
"While reducing our workforce is difficult and painful, it is absolutely necessary. We are committed to being profitable on an operating basis," Tom Tullie, AMCC's chief operating officer, said in a statement. "We remain dedicated to our communications, storage and embedded businesses and will continue to provide the high quality products, service and support our customers have come to expect from AMCC."
The company's shares moved up 3 more cents in after-hours trading to $3.44 on the news after closing the regular session with a 3-cent gain.
A month ago, the semiconductor maker posted a narrowed quarterly loss of $18.3 million, but said the business environment remained "challenging."
In September, Chairman and Chief Executive David Rickey resigned after eight years to spend time with his family. The company continues to search for a successor.