Global recession hits SiRF and Tele Atlas

17 Dec 2008

SiRF Technology and Tele Atlas have announced staff lay-offs because of the global economic crises shaking the GPS and navigation industry.

The SiRF cost reduction and company restructuring plan including a reduction of the company's workforce, the consolidation of offices and a reshuffling of priorities in terms of certain engineering projects was filed with the US Securities & Exchange Commission (SEC) on December 9th.

Together with the November spin-off of the Swedish subsidiary, SiRF Technology, AB, the plan will result in a headcount cut of about 25% - the majority of which is to be completed early in Q1 2009.

After filing a corporate restructuring plan with the SEC that included a 7% reduction in its workforce and the closing of its offices in Sweden and South San Francisco in March, and announcing plans to cut its workforce by another 7% - 9% by the end of Q3 2008, this is SiRF's third job cutting session this year.

According to a recent GPS World report, Tele Atlas has also laid off around 125 employees worldwide, or about 6% of its workforce.