TUCSON, Ariz. (AP) — A consolidation of manufacturing operations has led Texas Instruments to eliminate 300 jobs at its Tucson plant, the company announced.
That's about half the total work force of its Tucson operations.
However, the company said the Tucson plant will remain a long-term product design center and will retain about 300 higher wage engineering and development jobs.
Over the next two years, TI will consolidate its Tucson manufacturing operations into its Sherman, Texas, facility, the company said.
The Texas facility has more room for manufacturing and room for expansion, said Gail Chandler, company spokeswoman. It costs less to manufacture there because of reduced overhead costs, she said.
Tucson Regional Economic Opportunities views the remaining jobs as positive.
''It shows Tucson still offers the company institutional knowledge. And keeping higher skilled, higher wage jobs is part of our economic blueprint,'' said Laura Shaw, senior vice president of corporate and community affairs.
The first layoffs will occur during the middle of next year, the company said.
However, the company added that most won't be laid off until mid-2009.
Layoffs will include separation pay, extended insurance benefits and job-search assistance.