Lattice Semiconductor announces 14% workforce reduction
On order to better align its resources to support the current business level and promote greater efficiency throughout the company, Lattice Semiconductor implemented a comprehensive reduction in spending during the third quarter.
The actions are expected to result in a 14% workforce reduction and a 14% reduction in non-headcount operating expenses. The company says that it expects the operating expense reduction will help drive annual earnings expansion in the low double-digit range in 2025.
The company reported revenues of USD 127.1 million for the third quarter of 2024, with a gross margin of 69.0%. The third quarter results include a one-time GAAP-only charge of USD6.5 million related to the actions the company took to drive down spending during the quarter.
"Third quarter 2024 results were in line with the Company's prior expectations, which reflects the disciplined execution of our strategy and a continued focus on operational efficiency. After careful consideration, we proactively took action in the third quarter to better align our resources to the current business level, while maintaining the stability and integrity of our leadership product roadmap, customer support and demand creation infrastructure. Importantly, we do not expect any additional reductions will be needed. While we expect continued near-term industry headwinds, I am excited about the opportunity to build on Lattice's strong foundation," says CEO Ford Tamer, in the company's third-quarter report.
