LSI to Shut Two Units, Eliminate 1,400 Jobs

LSI Logic Corp., the largest maker of custom semiconductors, said it will eliminate 1,400 jobs, or 20% of its work force, and shed two businesses in an attempt to return to profitability.

The Milpitas, Calif.-based company said it wants to get rid of units that make chips for mobile phones based on the format developed by Qualcomm Inc. and for high-speed Internet access.

The moves will result in a $50-million to $70-million charge in the first quarter and should save about $30 million per quarter, LSI said.

Shares of LSI fell 21 cents to $15.29 on the Big Board.