Avago Expanding Its Manufacturing Outsourcing, Reducing Singapore Workforce

Avago making changes to help the company better deal with cyclical trends in analog interface component industry.

SAN JOSE, Calif. - Avago Technologies, a supplier of analog interface components for communications, industrial and consumer applications, announced Friday the further expansion of its manufacturing outsourcing program, which will result in the reduction of its Singapore workforce by about 230 employees.

The company expects to record a cash charge of nearly $4 million in its third fiscal quarter, ending July 31, 2007.

β€œIn January 2007, we announced a strategic shift in our business model to increase customer competitiveness in our four core markets by focusing existing resources on higher value-added activities such as new product introduction, research and development, marketing and supply chain management,” said Hock E. Tan, president and CEO of Avago Technologies. β€œThis strategy has increased the flexibility in our cost structure and enabled us to better deal with the cyclical trends that impact our industry.”
 
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