On Thursday, Pixelworks, Inc. (PXLW) announced a workforce reduction of approximately 16% affecting operations, research and development, sales, marketing, and administrative departments.
The company anticipates incurring expenses of roughly $1.7 million related to employee severance and benefits, which will be accounted for in the second quarter of 2024.
This restructuring initiative aims to streamline operations and align operating expenses with current revenue levels.
Employees being laid off, who are participants in one of the five employee stock ownership plans, will collectively receive $1.2 million from Pixelworks Semiconductor Technology (Shanghai) Co., Ltd.
This plan is projected to result in annual savings of about $4 million and is expected to be finalized by the end of the second quarter.
At present, Pixelworks's stock is up 6.42%, trading at $0.948 on the Nasdaq.
