Following its acquisition of ViXS Systems in August, Pixelworks Inc. has announced plans to streamline the organization.
A 15% reduction in workforce is expected across the firm’s development, operations, sales and administration departments, costing an estimated $2 million in employee severance and benefits costs. This initial cost will be absorbed by the savings anticipated to result from the merger.
The financial effects of the ViXS acquisition and the subsequent layoffs will be reflected in Pixelworks’ third-quarter figures, with the process expected to conclude by the end of the fourth quarter.
Todd Debonis, Pixelworks’ president and CEO, said:
“This realignment further streamlines the organization, reflecting continued execution on our ViXS integration plan and increased focus on the rapidly emerging OTA market. In addition to these initial cost savings, we also expect to achieve significant revenue and operational synergies by leveraging the sales channels, product development and customers of the combined company”.
