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Nat Semi Cuts 130 Jobs

The chipmaker will take a $10 million charge.


National Semiconductor


will lay off about 130 workers and take a $10 million charge in the current quarter, as the company continues to refocus its product plans while confronting difficult business conditions.

The Santa Clara, Calif., chipmaker announced the layoffs Tuesday, noting that the affected jobs are primarily in the company's "product line and support functions."

"This action reflects the company strategically aligning its resources as part of National's focus on accelerating revenue growth in key market areas that require better power management and energy efficiency," the company said in a statement.

National Semi employs about 7,300 people. The $10 million charge will primarily involve severance payments, although National Semi said a small portion also relates to a factory upgrade announced in January.

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, National Semi is increasingly focused on producing lucrative high-performance analog chips, lifting the company's gross margin above 64% in recent quarters compared with the high 50% range typical of past years.

But National Semi is also experiencing difficult business conditions, with sales of chips for cell phones and other mobile devices weakening in recent quarters.

National Semi is due to report its fiscal fourth-quarter earnings results in June.

Analysts expect the company's revenue to decline 1.5% year-over-year to $449 million, with EPS of 26 cents.

Shares of National Semi were unchanged at $20.99 in extended trading Tuesday.