Texas Instruments Faces Turbulence with Stock Plunge and Strategic Layoffs Amid Revenue Decline
1min read In early April, texas instruments (TXN) experienced a significant decline in its stock value, dropping for two consecutive days with a 7.80% decrease on April 4. This marked the lowest point since November 2023. Investors are keenly anticipating the company's performance in its upcoming quarterly earnings report for the fiscal year 2025, scheduled for disclosure on April 22.
Texas Instruments is a prominent player in the semiconductor industry, known for its design and manufacturing prowess across 30 countries. However, the company reports a downturn in financial performance, with total revenue of $156.41 billion for the fiscal year ending December 2024, a decline of 10.72% compared to the previous year. Moreover, net income attributable to shareholders reduced by 26.28%, highlighting the challenges faced amidst a competitive landscape.
Recently, Texas Instruments announced layoffs at its Lehi factory, shortly after receiving $16.1 billion in federal funding for semiconductor factory construction, including a new facility in Utah. The company stated this reduction is part of strategic reforms to support its long-term operational plan, although it did not specify the number of employees affected. The layoffs fall below the threshold required for WARN notification, which mandates 60 days' notice prior to large-scale layoffs.
This move raises questions about the company's restructuring motives, given last year's reported sales slump and predictions of further decline in the first quarter of 2025. Nevertheless, Texas Instruments confirms its commitment to establishing a strong manufacturing presence in Utah, viewing it as a crucial component of its geopolitical capacity strategy for the coming decades.
