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Key Takeaways
- Lattice Semiconductor plans to cut 14% of its workforce as profit and sales slump.
- The chipmaker said it took a one-time $6.5 million charge as part of its cost-cutting moves.
- CEO Ford Tamer said the company continues to face “near-term industry headwinds.”
Lattice Semiconductor (LSCC) shares slid in early trading Tuesday after the company missed profit estimates and said it would slash jobs to cut costs.
The maker of industrial and automotive chips reported third-quarter earnings per share (EPS) of 5 cents, down from 39 cents a year ago and below analysts’ estimates compiled by Visible Alpha. Revenue sank 33.9% to $127.1 million, roughly in line with forecasts.
Lattice To Cut 14% of Its Jobs
Lattice said the results were impacted by a one-time charge of $6.5 million related to moves meant to drive down spending. Those actions will lead to a 14% reduction in its workforce, or about 160 positions, and a 14% decline in non-headcount operating expenses, the company said.
Lattice said it expects lowering its operating costs “will help drive annual earnings expansion in the low double-digit range in 2025.”
CEO Ford Tamer said the company does not expect additional cuts will be needed, though he warned Lattice could face “continued near-term industry headwinds.”
Shares of Lattice were down 3% to $50.40 in early trading Tuesday, and have lost more than one-quarter of their value since this start of the year.
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