Transmeta to cut 100-200 jobs

C.V. Dee
(01/06/2005 7:09 PM EST)

  It may go from bad to worse for Transmeta Inc., a troubled supplier of x86-based microprocessors. The chip maker is expected to cut 100-200 jobs on Jan. 21, when it elaborates on its new business model, according to the Mercury News, which cited investment banking firm Piper Jaffray.

Here's the stunning news: Transmeta has about 325 employees. In other words, the company may cut half or more of its workforce. Most believe the company cannot compete against the likes of AMD and Intel in the market.

In what portends a possible move to exit from its x86-based microprocessor products business, Transmeta on Tuesday (Jan. 4) announced that it will increase its focus on the licensing of its intellectual property (IP) and advanced technologies in 2005.

Transmeta (Santa Clara, Calif.) is actively engaged in discussions regarding strategic alliance opportunities for leveraging the company's microprocessor design and development capabilities to increase shareholder value. Transmeta has been working with Perseus Group LLC, a San Francisco-based investment banking firm, and other advisors, in that effort (see Jan. 4 story).