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Restructuring in the offing at MIPS

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CIOL Bureau
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LONDON: MIPS technologies, announced a restructuring plan which will ultimately lead to a reduce in headcount and have the company incurring a restructuring charge of $1 million. These new internal changes will reportedly save the company almost $2-2.4 billion in annual expenditure.



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The processor IP licensor is being done to streamline the current expenditure of the company with the new opportunities that it is integrating, including Android based mobile apps. Sources reiterate that this restructuring is strategic and not caused by performance in this quarter. The new measures have been in implementation since June 18, and sources say they will be complete in a span of two months.



The VP of Corporate administration at MIPS, volunteerd to be included in the restructuring and has resigned as executive officer at MIPS. He will however be a part of the company for a transition period, as VP of Human Resources. Industry analysts are of the opinion that this restructuring is a significant reflection of the changes that are being implemented at the company since Sandeep Vij took over as CEO in January.

There are other high paying executive jobs that are being eliminated, and the difference in expenses is being pumped into R&D in 2011. Analysts are also not perturbed by this turn of events — according to them, MIPS is still in a solid position with licensing pipeline continuing to have promising growth.

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