Zilog to Cut Work Force Amid Weak Demand

Zilog Inc. said it will cut 7.3% of its work force to cope with slowing sales of its specialty computer chips used in consumer electronics and personal computer products. Zilog said it will reduce its 1,650-person work force by eliminating 120 jobs at its Nampa, Idaho, manufacturing plant. Texas Pacific Group acquired Zilog and took it private earlier this year. In the second quarter, Zilog reported a $28.8-million loss on $48.6 million in sales. The company eliminated 33 jobs in sales and at its Campbell headquarters last month to cut costs. Chip makers have been hurt by lackluster PC sales, excess demand and falling prices. Worldwide chip sales are projected to fall 4% this year to $44 billion. Zilog said it will offer employees whose jobs are eliminated four to 10 weeks of severance pay, health benefits through December and assistance in finding new jobs.