Blaming the downturn in the semiconductor industry, Agere Systems said it would cut another 4000 employees, or about 25 per cent of its workforce, including about 1000 employees from its Madrid operations.
The optical components maker, and former unit of Lucent Technologies that was spun off in late March, said the cuts come on top of the 2000 jobs it said in April it would eliminate.
With the current round of layoffs, the total workforce will drop to 12,500 employees.
Agere also said it is looking for a buyer for its chip fabrication plant in Madrid, where it expects to discontinue operations by the end of the year.
The company is also reviewing its manufacturing capacity facilities in the US.
John Dickson, president and chief executive of Agere, said: "We built our business to serve a growing market, which is instead deteriorating."
Dickson said the job cuts will save an estimated $520m in annual costs.
Agere's cuts will include its research and development budget as wellas staff. The company said it would now focus on communications infrastructureand wireless products.
Agere expects to take a charge of up to $900m to cover costs of the restructuring, with $725m of it taken in this quarter.
The company also announced that its revenues for the second quarter will be about $920m, some $30m less than the company had expected.
Australian government to require technology and communications companies to provide access to messages
New bill avoids demanding 'backdoors' in encryption, but includes measures to compel companies to provide access to encrypted communications
Indonesian overclocker Ivan Cupa (with the aid of a lot of liquid nitrogen) achieves record overclock on AMD's latest Threadripper
Ssupermassive black hole is so big it corresponds to four per cent of the galaxy's total mass
Imminent attack will target a single bank with cloned cards used to fraudulently withdraw millions over one weekend