Intersil Corporation Announces Restructuring Initiatives

Intersil Corporation today announced that they will be restructuring initiatives designed to prioritize the company’s sales and development efforts, strengthen financial performance and improve cash flow. The restructuring plans will be substantially completed during the first quarter of 2013 and are expected to reduce annual operating expenses by approximately $30 million.

A restructuring charge of approximately $15 million for severance related benefits is expected during the first quarter of 2013.

Today’s market requires us to sharpen our focus on core strengths and markets where we can offer superior value to our customers, said Jim Diller, Interim President and Chief Executive Officer. Today, we are announcing plans designed to ensure that Intersil remains well-positioned and appropriately structured for sustainable, long-term growth and profitability.

The refocusing effort will reduce the company’s global work force by approximately 18%. Costs savings are expected to be achieved through reductions in work force and increased focus on new product development efforts.

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