Vitesse Plans to Trim Jobs, Cut Executive Pay

Communications chip maker Vitesse Semiconductor Corp. said Wednesday that it plans to reduce its work force by about 12% in the current quarter and slash executive salaries by as much as 25%. The company also will record a charge.

The Camarillo-based company, which employs 1,280 people worldwide, said the job cuts are due to the industrywide slowdown in semiconductor demand. It said upper management would take a 10% to 25% pay cut to reduce expenses.

Vitesse operates two chip fabrication plants--in Camarillo and in Colorado Springs, Colo.

Because of the job cuts, Vitesse said it expects to record a one-time charge of $1.5 million to $2 million in its fiscal third quarter ending in June.

Vitesse did not say how much it expects to save as a result of the cost-cutting. A spokesman for the company was not immediately available.

In mid-April, Vitesse reported its first quarterly drop in revenue in eight years because of a sharp drop in demand for communications and data-storage chips.

Vitesse shares gained sharply on Nasdaq ahead of Wednesday’s announcement but slipped in after-hours trading. The stock ended the regular trading session at $37.77, up $3.29, a gain of almost 10% on the day, but slipped back to $37.07 in after-hours trading.