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RF Micro layoffs to include 45 in Triad

Wednesday, March 4, 2009
(Updated 10:56 am)

Chip maker RF Micro Devices announced this week that it would lay off another 100 people worldwide, including 45 locally.

That’s in addition to 150 Greensboro layoffs announced in December but slated for the first quarter of this year.

The latest cuts mean that since last March the company has eliminated 600 jobs in Greensboro, cutting its local work force to 1,420.

The latest restructuring, announced in a Securities and Exchange Commission filing, will save the company between $12 million and $15 million annually.

The most recent layoffs represent about 2 percent of the company’s global work force. Most of the local terminations were effective Monday, the company said.

“What we are doing is sizing the business consistent with current demand,” said Jerry Neal, executive vice president for strategic development and a co-founder of the company. “No one knows for sure what the environment will look like the balance of the year.”

Worldwide, the company now employs 4,280 people.

Neal said the company does not anticipate further layoffs this year, but left that option open.

“We have to run the business based on the conditions at the time,” he said.

RF Micro makes microchip components for cell phones and other radio frequency products.

Like other chipmakers, RF Micro has been hurt by weak demand from its customers, which include companies such as Nokia and Motorola.

In addition to the layoffs, Neal said the company has been paying down debt, introducing new products and broadening its customer base.

“The company continues to be strong,” he said. “(We’re) positioning for the turnaround when it comes.”

The company’s stock closed at 80 cents a share Tuesday, down 4 cents.

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com

Accompanying Photos

File photo (News & Record)

Photo Caption: RF Micro Device's headquarters in Greensboro.

Comments

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Illiterati

March 4, 2009 - 10:29 am EST

Didn't RF Micro receive tax incentives to maintain a certain employment level? How, if at all, will these layoffs affect that?

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