Cypress Semiconductor (CY) to Eliminate 500 Positions

October 3, 2016 4:27 PM EDT

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Cypress Semiconductor (NASDAQ: CY) disclosed in an SEC filing:

On September 27, 2016, Cypress Semiconductor Corporation ("Cypress," or the "Company") adopted a restructuring plan (the "2016 Restructuring Plan") to realign our organizational structure and shift our investments and focus to our high-growth businesses. As part of the 2016 Restructuring Plan, Cypress expects to eliminate approximately 500 positions from its global workforce across all business and functional areas. In connection with this action, the Company expects to record and pay in cash employee severance and other related charges in a range of approximately $40 million to $50 million, primarily in the third and fourth fiscal quarters of 2016. A portion of the charges may be recorded and paid in cash through fiscal year 2017. The actual timing and costs of the plan may differ materially from the Company’s current expectations and estimates. The Company plans to reinvest a substantial portion of the savings generated from the 2016 Restructuring Plan into employee related matters and certain business initiatives and opportunities. Consequently, the 2016 Restructuring Plan may not result in a material reduction in our future operating expenses.

The Company does not plan to further update these estimates but intends to provide details of the restructuring costs as part of its quarterly financial reporting, if needed.

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