SAN FRANCISCO -- In an expected move, Cadence Design Systems (CDNS) - Get Report announced late Wednesday that it would restructure and lay off 12% of its workforce.

The developer of software for the design of semiconductors will eliminate 625 positions over the coming year.

Cadence said it expects to take a pre-tax restructuring charge of $65 million to $70 million, including $48 million in the third quarter of 2008. The company expects the restructuring to reduce annual operating expenses by $150 million.

For the third quarter, analysts were expecting Cadence to post revenue of $239.3 million and a net loss of $27.2 million.

Shares were down 61 cents, or 12.32%, to $4.34 at the close of the trading on Wednesday.

Cadence apparently plans to reduce or discontinue underperforming product lines.

"In creating the restructuring plan, we emphasized those market segments where Cadence enjoys a leadership position," Senior Vice President Charlie Huang said in a statement. "Going forward, we will focus on excelling in our core business areas."

Cadence is undergoing a major transition due to an expected 30% drop in revenue for 2008. Four senior executives, including the chief executive,

resigned in October

, just weeks before the company

disclosed it would restate earnings

for the first two quarters because of an improper recognition of $24 million.

Once the market leader, Cadence has been losing market share to competitors

Synopsys

(SNPS) - Get Report

and

Mentor Graphics

(MENT)

.