Cirrus to lay off workers

Reflecting a softening demand for PCs, Cirrus
Logic has announced that it will lay off a sizable chunk of its work
force.
The company, a major manufacturer of chips for PCs, also said it
expected lower revenue and a "substantial" operating loss in the quarter
ending March 30.
About 13 percent of its work force of 3,500 will be laid off and further
cost reductions will be achieved through a reduction of bonus payments, Cirrus said.
The company will focus on what it terms "key new products" to drive revenue
growth. These products include chips for hard disk and CD-ROM drives,
multimedia (including 3D graphics and video) chips, and communications
chips, including those used for faxes and modems.
Cirrus Logic will proceed with plans to expand its manufacturing base at
MiCRUS, its joint venture with IBM, and
plans for its joint venture with Lucent Technologies (formerly AT&T
Microelectronics) in Orlando, Florida.