SAN JOSE, Calif. (AP) -- Fairchild Semiconductor said Friday it plans to cut 1,100 jobs, or about 12 percent of its work force, and reduced its revenue guidance for its fiscal fourth quarter.
The company now expects $320 million in sales for the quarter, down from previous guidance of $338 million to $360 million. The new guidance represents a 26 percent decline from the company's revenue in the same quarter a year ago.
Wall Street analysts expect $351.7 million in sales, according a Thomson Reuters poll.
The guidance cut follows a similar reduction in November. Previously, Fairchild had forecast $377 million to $403 million in revenue.
The company also cut its projected gross margins to between 25.5 percent and 27 percent, down from a prior forecast of 27.9 percent to 28.9 percent.
Fairchild said that the layoffs should save $33 million annually. The company expects to record $12 million to $16 million in one-time severance costs.
Semiconductor companies across the sector have slashed their revenue projections for the quarter as demand for the products their chips go into, like computers and cell phones, plummets.