SAN FRANCISO—EDA vendor Magma Design Automation Inc. plans to restructure its operations and reduce its workforce b up to 10 percent, the company said Thursday (Oct. 2).
Magma (San Jose, Calif.) said it expects to record a one-time charge during the second quarter of fiscal 2009 of $2.5 million to $3.5 million to cover personnel-related costs, including severance benefits and other costs.
A spokesperson for Magma could not provide a specific number for the planned layoffs, but said it would be 10 percent or less of the company's total workforce. Magma's total head count at the close of its most recent quarter was 1,011.
The move is part of a plan initiated in May 2008 to restructure its operations, Magma said. The goal of the restructuring is to reduce costs and focus on key product areas, the company said.
In a statement, Roy Jewell, Magma president and chief operating officer, said the company is adusting expenses to be consistent with new revenue expectations and restore profitability on a non-GAAP basis by the end of the company's fiscal year. Magma on Aug. 28 cut revenue guidance for the current fiscal year by about 30 percent.
"These changes put our focus on product areas that stand to drive our greatest growth,' Jewell said.
