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Texas Instruments’ 3,500-Job Restructuring: What Happened in 1998

Texas Instruments’ June 1998 restructuring targeted about 3,500 worldwide job eliminations as the company left the memory business and sold it to Micron.
From TheFinanceBase Team2 min to read

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Texas Instruments announced a worldwide plan on June 18, 1998, to eliminate about 3,500 jobs over the following months. It was a historical restructuring—not a 2026 layoff announcement—and the figure included voluntary departures, attrition and outsourcing as well as layoffs.

When did Texas Instruments announce the 3,500 job cuts?

TI announced the plan on June 18, 1998. The company said the reductions would take place around the world over the next few months; the announcement did not describe a single-day round of dismissals. Texas Instruments’ announcement characterized the target as approximately 3,500 jobs.

Were all 3,500 cuts layoffs?

No. TI described a job-elimination target to be reached through several methods: voluntary programs, normal attrition, outsourcing, layoffs and closure of several facilities. The announcement did not provide a numerical breakdown among those methods, so 3,500 should not be read as a confirmed count of involuntary layoffs.

Why was TI restructuring?

The company pointed to weak conditions in the semiconductor market, earlier business divestitures and its decision to leave the memory business. It said restructuring would bring support-function costs in line with the company’s overall scale and allow manufacturing resources to be combined more efficiently. TI’s announcement and contemporaneous reporting described these reasons.

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How was the plan connected to Micron?

The job plan came as TI exited dynamic random-access memory (DRAM), a type of semiconductor memory. TI agreed to sell its memory business to Micron Technology for approximately $800 million in common stock and assumed debt, according to contemporaneous reporting. The sale was part of the same strategic shift away from memory operations; the available reporting does not establish that the sale alone accounted for all 3,500 targeted job reductions.

What were the expected savings and restructuring costs?

Figure What it represents
$270 million TI’s estimated ongoing annual pretax savings from the restructuring, as announced in 1998.
$233 million TI’s second-quarter 1998 pretax restructuring charge.
$161 million Severance portion of the second-quarter charge.
$55 million Asset write-offs included in the second-quarter charge.
$17 million Vendor cancellation and lease costs included in the second-quarter charge.

The $270 million figure was a projected annual pretax saving, while the $233 million charge was a reported one-time restructuring expense for the second quarter of 1998. They measure different things and should not be treated as directly interchangeable.

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