The company is cutting 1,800 jobs, and an additional 1,600 staff are leaving for voluntary retirement or departures. In total, the company is reducing its headcount by 12 percent.

The job cuts come as the company reported an 86 percent year-over-year fall in net income for the fourth quarter of 2008. The company reported net income of US$107 million, compared to $753 million in the fourth quarter of 2007. The company also reported revenue of $2.49 billion, a 30 percent fall year-over-year.

The company took charges of $254 million that included the job cuts and charges related to restructuring its wireless business announced in October. Factoring in restructuring of the wireless business, the staff cuts should yield annualized savings of about $700 million, according to the company.

The corrective action will reduce the company's costs as the global economy continues to weaken, said Rich Templeton, TI chairman, president and CEO, in a statement. Most of the staff reduction will come from internal support functions and "non-core" product lines, Templeton said.

"By reducing expenses now, we keep TI financially strong and able to invest for future growth," Templeton said. The company is not betting on a near-term economic rebound, he said.