SUNNYVALE, Calif. (AP) -- Flash memory chip maker Silicon Storage Technology Inc. said Wednesday it plans to cut 120 jobs, or 17 percent of its work force, to lower costs amid the global economic turmoil.
The company also reduced its fourth-quarter revenue outlook to a range of $56 million and $58 million from a previous estimate of $63 million to $68 million. It now expects to post a loss of 11 cents to 13 cents for the quarter, compared with its previous outlook for a loss of 7 cents to 12 cents per share.
Excluding charges related to the job cuts, the company expects a loss of 10 cents to 9 cents per share for the quarter.
Silicon Storage expects the job cuts to be completed by the end of the year. It plans to take a restructuring charge of about $2.8 million, mostly for severance costs.
The job cuts and related actions are expected to lower costs by about $13 million in 2009, the Sunnyvale-based company said.
Shares of Silicon Storage finished Tuesday's trading at $2.25.