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One Who Knows tells me that there is considerable overlap between the product lines of Freescale and NXP which will be a major determinant of the number of people who will be sacked after the merger.

NXP has said it can identify $500 million in long-term cost savings and $200 million in cost savings in the first 12 months after the merger. $200 million equates to several thousand lay-offs and $500 million to 10,000+ lay-offs. NXP says the projected cost savings don’t all come from lay-offs but this is where the bulk of cost savings usually come from in these cases.

Freescale has 17,000 employees but, as these areas of overlap suggest, some of the post-merger sackings may take place at NXP.

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