National Semiconductor Cutting 1,725 Jobs

Cuts will eliminate more than one-quarter of National’s work force and came as the chip maker recorded a 71 percent decline in its third-quarter earnings.

SANTA CLARA, Calif. (AP) -- Faced with a steep decline in sales, chip maker National Semiconductor Corp. said Wednesday it will eliminate more than one-quarter of its work force, or 1,725 jobs.

The company said it will immediately begin trimming 850 positions worldwide in its product, marketing, manufacturing and support businesses. In Maine, about 40 positions will be eliminated at National's manufacturing plant in South Portland, a spokeswoman said.

An additional 875 jobs will be lost with the shuttering of facilities in Suzhou, China, and Arlington, Texas, over the next few quarters. National Semiconductor currently has about 6,500 employees.

The cuts came as Santa Clara-based National recorded a 71 percent decline in its third-quarter earnings, posting a profit of $21.1 million, or 9 cents per share, compared with $72.9 million, or 29 cents per share, a year earlier.

"The worldwide recession has impacted National's business as demand has fallen considerably," CEO Brian L. Halla said in a statement.

In Maine, the closing of the Texas plant will mean a shift of additional work to the South Portland plant, said spokeswoman LuAnn Jenkins. The South Portland plant will employ 452 people once the layoffs are completed, she said.

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