Cadence's Tality subsidiary cuts 200 jobs, closes design centers

Cadence's Tality subsidiary cuts 200 jobs, closes design centers
By Semiconductor Business News
February 8, 2002 (6:00 p.m. EST)
URL: http://www.eetimes.com/story/OEG20020208S0098

SAN JOSE -- Tality Corp. today announced it will eliminate 200 jobs and restructure its wireline communications business as it focuses more attention on its IC design and intellectual property (IP) business.

The engineering services subsidiary of Cadence Design Systems Inc. said it will no longer provide board-level, mechanical and packaging services for data communication and telecom equipment. Tality's wireless business remains unchanged.

"Our chip-level business has remained relatively healthy for the past 12 months despite the battering the communications industry as a whole has taken," said Brent Hudson, president of Tality. "With growth expected to return first to the chip sector of the industry, we need to focus our effort in order to fully capitalize on the market recovery.

"Strengthening our IP position and continuing to build on our strong silicon design value proposition are our top priorities for the wireline communications segme nt of our business," he said.

Tality will close its design centers in Ottawa, Lowell, Mass., and Noida, India. A restructuring charge of $25 million will be taken in the first quarter to cover severance, facility closures, and related asset write-offs, said the Cadence subsidiary.