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Scottish tech firm to make worldwide job cuts

Category: Scotland Business News — Mark on November 6, 2013

Wolfson Microelectronics has announced a number of job losses, as it looks to cut costs in response to disappointing sales figures.

The Edinburgh-based audio chip manufacturer, which counts Samsung and Lenovo among its clients, expects to make around 10 per cent of its global workforce redundant in the move.

The announcement comes after the firm saw its sales slow through the third quarter of the year. A warning was also issued for the fourth quarter, with the company saying customer cancellations and delayed payments would affect revenues.

The firm has also said that it expects some of its key developments to slip back throughout 2014.

In its latest results, Wolfson saw its revenues drop to £27 million. In the same period last year, the firm posted revenues of £33 million.

There was also an operating loss of £1.85 million, which compares with a profit of over £2 million in 2012.

Many firms in Scotland have managed to address slipping revenues, often caused by late invoice payments, with the help of discounting and factoring facilities.

With around 500 staff employed worldwide, Wolfson has not yet confirmed where the job losses would be. It is also unclear as to whether any of the 280 people working at its headquarters in Edinburgh will be affected by the cuts.

Under its cost cutting plans, Wolfson will reduce its annual overheads by almost £6 million, with action points implemented from the first quarter of next year.

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