Technology licencing company, Rambus will resort to restructuring and cost saving measures to cut its expenses by$30-35 million annually. While the company continues to invest in strategic businesses, the majority of the reduction in expenses are being made for general and administrative purposes.
''After reviewing our expenses in detail, we have concluded that the support infrastructure can be reduced to improve profitability,'' said Dr. Ronald Black, Rambus CEO.
The company has decided to cut 15 per cent of its workforce and will include a new, 3-business organization structure around memory and interfaces (will be led by Kevin Donnelly), lighting and display technologies (will be led by led by Jeffery Parker), and Cryptography Research (will be led by Paul Kocher).
The engineering design teams, Rambus Labs, and other strategic initiatives will be consolidated under Dr. Martin Scott, who will take the new role of CTO. Jerome Nadel will be joining Rambus as Chief Marketing Officer, responsible for repositioning the company and creating closer relationships with customers.
''While we have refined some of our R&D investments, we are preserving all of our strategic initiatives as we believe they will drive significant growth in the future,'' Black added. Inorder to develop interconnect and 3D packaging technologies, Rambus recently partnered with the Industrial Technology Research Institute (ITRI) in Taiwan.
Satish Rishi, Rambus CFO, said, ''We expect to take a charge for severance, on a cash basis, of approximately $6 million over the next two quarters. We are also reviewing our assets, businesses, and other contractual obligations and may take additional charges by the end of the year. Excluding these charges, and including additional investment in strategic initiatives, we expect significant net cash savings of approximately $30-$35 million annually.''
The company said that, reductions in expense and associated workforce will be completed in 2012.
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