LSI to Cut Staff, Take Second-Quarter Charge

LSI Logic Corp., the biggest maker of custom semiconductors, said it will fire 225 employees, or 3% of its work force, and take a second-quarter charge as customers cut orders amid a slowing economy.

About 50 to 60 of the employees are in the Milpitas, Calif., area, where LSI is based, said spokesman Kevin Brett. Other facilities that will lose jobs are in Santa Clara and Fremont, Calif.; Fort Collins, Colo., and Gresham, Ore., he said.

Details on the charge weren’t available, but Brett said the amount is not expected to be significant.

LSI imposed mandatory vacations, cut executive pay by 10%, postponed merit pay and suspended bonuses before the layoffs.

LSI closed off 30 cents at $18.07 on the Big Board before the announcement.