AVAGO TECHNOLOGIES: To Reduce Singapore Staff by 230
Company Reporter, May 22, 2007
Avago Technologies has further expanded
outsourcing program. As a result of these latest actions, the
Company will reduce its Singapore workforce by approximately 230 employees and expects to record a cash charge of approximately
US$4 million in its third fiscal quarter, ending July 31, 2007.
"In 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. "This strategy
has increased the flexibility in our cost structure and enabled us to better deal with the cyclical trends that impact our
Headquartered both in San Jose, CA, and in Singapore, Avago Technologies Holdings Pte. Ltd. -- http://www.avagotech.com/ -- is a semiconductor company, with approximately 6,500 employees
worldwide. Avago provides an extensive range of analog,
mixed-signal and optoelectronic components and subsystems to more than 40,000 customers. The company's products serve four end
markets: industrial and automotive, wired networking, wireless communications, and computer peripherals.
It has manufacturing and marketing centers in Singapore, United States, Italy, Germany, Korea, China, Japan and Malaysia.
Avago Technologies is the successor to the Semiconductor Products Group of Agilent. Avago Technologies purchased the
business of SPG as of December 1, 2005, for US$2.6 billion in cash.
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As reported by the Troubled Company Reporter - Asia Pacific on Oct. 2, 2006, Moody's Investors Service revised these ratings
-- US$250 million Senior Secured Revolver due on 2012,
from B1 to Ba2, LGD1, 4%;
-- US$500 million 10.125% Senior Unsecured Notes due
from B3 to B2, LGD3, 47%;
-- US$250 million Floating Rate Senior Unsecured Notes
2013, from B3 to B2, LGD3, 47%; and
-- US$250 million 11.875% Senior Subordinated Notes
2015, from Caa2 to Caa1, LGD6, 91%.