Imagination Technologies is retrenching, getting rid of several product lines it picked up through a string of acquisitions and laying off 350 people, or roughly 20% of its workforce.
Imagination Technologies Group plc , a supplier to Apple and Samsung, has been squeezed by slowing smartphone sales, a key factor compelling the company to slash costs. In January it revealed plans to reduce its cost base by roughly $20 million this year, and today it said it is looking to cut another roughly $16 million in 2017, plus write off roughly $6.5 million in assets.
Moving forward, the company intends to concentrate on its PowerVR GPU line, its MIPS processors and Ensigma RF processing ICs. There are no planned reductions in these areas, the company stated. In fact Imagination said it is seeking to fill over 50 roles in its PowerVR business.
The company said its MIPS business is strong in networking, set top boxes and embedded processing and Ensigma remains attractive in WiFi and Bluetooth applications.
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A layoff of 150 was part of the previously announced cost cuttings; today's announcement adds another 200.
The company had previously announced its intention to sell its Pure operation by the end of this year. Pure produces radios for the consumer market. Imagination said its system on a chip (SoC) design business will be refocused and rescaled.
In the last six years, Imagination pulled off a short string of strategic acquisitions, including Caustic Graphics, multimedia IC specialist Nethra Imaging and CPU maker MIPS Technologies.
Longtime CEO Hossein Yassaie stepped down in February, simultaneous with the first announcement of retrenchments at the company.
— Brian Santo, Senior Editor, Components, T&M, Light Reading