Xilinx To Reduce Its Global Workforce - Quick Facts

(RTTNews) - Xilinx, Inc. (XLNX) said the company expects to reduce its global workforce by approximately 7%. The company also plans to take other measures to reduce operating expenses, including further reducing discretionary spend and targeting additional operating efficiencies across the business.

Xilinx expects to generate non-GAAP cost and operating expense savings of approximately $17 million to $20 million in the fourth quarter. The company expects to incur a GAAP pre-tax charge of approximately $25 million to $30 million in the fourth quarter, primarily related to severance pay expenses.

"We are seeing greater than expected weakness in our wired and wireless business due to a slowdown in both 5G and wired infrastructure deployments, in addition to ongoing global trade headwinds. We expect some of these headwinds in our wired and wireless business to be persistent, resulting in revenue growth lower than our prior expectations. We are, therefore, taking several actions to further reduce our operating expenses this quarter," said Victor Peng, CEO.

The Xilinx Board declared a quarterly cash dividend of $0.37 per outstanding share of common stock payable on February 20, 2020 to all stockholders of record at the close of business on February 11, 2020.