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by CIO Staff

Chip Maker PortalPlayer Drops 14% of Workforce

News
Jun 09, 20061 min
Outsourcing

PortalPlayer, a specialty chip producer that gets roughly 95 percent of its total sales from Apple Computer, was dealt a blow recently when Cupertino, Calif.-based Apple said it would not include PortalPlayer’s new version of its multimedia chips within the upcoming iPods, and as a result, the company let go 45 staffers, or 14 percent of its total workforce, TheStreet.com reports.

PortalPlayer plans on absorbing a charge of $850,000 to $950,000 in the current quarter due to the shake-up, but it also expects to save between $6 million and $7 million in expenses, according to TheStreet. Considering the company took in net earnings of $48 million in 2005, according to TheStreet, that’s no small chunk of change.

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