NXP Semiconductors is conducting layoffs this week at its Austin operations, the chipmaker confirmed Tuesday.
"I can confirm that as part of running the day-to-day business operations, due to the difficult market landscape and continuing efforts to increase operational efficiencies, a limited number of Austin-based employees have been notified they will be exiting the company," according to NXP spokesperson Joon Knapen. "The impacted Austin-based employees are being offered our standard severance package in order to help alleviate the financial pressure as they try and secure other employment."
The Netherlands-based company declined to provide any information on the number of employees or departments affected, or any details of the severance packages.
This news follows other layoffs that NXP had conducted earlier in the year. In an interview with the American-Statesman in May, CEO Rick Clemmer indicated that there would be more layoffs to come.
NXP, which last year merged with Austin-based Freescale Semiconductors, is one of Central Texas's largest tech employers. The company said earlier this year it employed 5,000 in the Austin area.
The chip company makes processors, sensors and other products that used to help devices communicate, process information or become more secure. One of its biggest areas of emphasis is the "Internet of Things," a chip industry term for non-computing devices connected to the Internet.
In Austin, NXP not only designs chips but also does research and development and manufacturing.
NXP bought Freescale for $11.8 billion in December, and layoffs were expected as part of that purchase.
But it's difficult to ascertain how many people or departments are affected by these layoffs. Because NXP employees often sign non-disclosure agreements that prohibits them from disclosing information to the media, information often trickles in to the media through spouses or friends of employees.
UPDATE, 1:45 p.m Wednesday: The American-Statesman has received several emails purporting to be from NXP employees offering details about the layoffs. One person alleged that hundreds are being laid off and that these layoffs are coming from the Digital Networking division, one of five business units that were part of the Freescale business structure. This person claims that at least 60 percent of Digital Networking employees in Austin are being laid off.
The American-Statesman hasn’t been able to verify the identities of the people making those claims. They said they were afraid of sharing their names for fear of reprisal. Many employees sign non-disclosure agreements that prohibit communication with the media.
The Texas Workforce Commission said Wednesday it has not received a WARN (Worker Adjustment and Retraining Notification) notice from NXP.
These layoff warnings, which mandate a 60-day notice to employees, are typically required when an employer engages in a mass layoff OF 500 or more employees during a 30-day period. If it only affects 50 to 499 employees, the layoffs have to make up at least 33 percent of the employer’s active workforce to trigger a WARN notice.
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