Semtech Cuts Staff Level by 21% in 2nd Quarter

Semtech Corp. of Newbury Park has trimmed its temporary and permanent employees by 21% in the second quarter.

More than half the reductions were in temporary positions, officials said.

Semtech, a supplier of analog semiconductors, said it had added a number of temporary positions to its manufacturing operations in the past year and phased them out in the second quarter as it adjusted manufacturing rates to order rates.

Semtech expects the cost reductions to help gross margins in the second half of the year. The company said inventory growth slowed each month of the second quarter, and it is expected to begin declining in the second half.

Semtech said it will add up to 30 new designers and layout people at its design center in the next two years.