iPod chip maker to cut workforce
After being beat out by Samsung as a supplier of chips for Apple\'s next-generation iPods, PortalPlayer is throwing employees from the boat in an order to right itself, reports The Street.com.
As a result of the move, PortalPlayer expects to incur a restructuring charge of $850,000 to $950,000 in its current quarter, according to the report. But in the long run, the company figures the lay offs will save it $6 million to $7 million in expenses.
\"That\'s not an insignificant amount for a company with net earnings of $48 million last year and just $10 million the year before,\" wrote The Street.com\'s Troy Wolverton.
The decision was a huge blow to PortalPlayer, which generates about 95 percent of its sales from Apple.
Samsung is believed to have picked up the iPod business lost by PortalPlayer.
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