Cirrus Logic (NASDAQ:CRUS) layoffs are on the way as the fabless semiconductor company deals with problems surrounding a product release.
Cirrus Logic says that it is laying off 5% of its global workforce. This reduction is due to trouble with a product release and overall market conditions. Cirrus’ product was originally set to come out this fall, but will no longer come to market as expected.
To go along with the layoffs, CEO John Forsyth has voluntarily requested a decrease in his annual salary. The board approved this request, which drops his salary by 10% to $655,200.
Cirrus Logic included the following statement about the layoffs in a filing:
“The Company continues to take steps to improve operational efficiency through product prioritization, targeted investments in R&D, and continued leverage in SG&A. The Company expects to recognize charges related to this workforce reduction in the second quarter of fiscal year 2024.”
Cirrus Logic Joins Layoffs Trend
There have been plenty of layoffs throughout 2023 as a worsening economy has weighed on companies. That’s especially true for those in the tech sector. We even saw Microsoft (NASDAQ:MSFT) announce another round of layoffs this year just a couple of days ago.
In response to today’s layoffs news, shares of CRUS stock are down 2.4%. However, the stock is still up 11.7% since the start of the year.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.