Shares of Cadence Design Systems Inc. jumped 27 percent Wednesday after the company said that it would cut 560 jobs from its global workforce and take a related fourth-quarter charge of $36 million.
The action is expected to pare expenses by $8 million in the fourth quarter and $60 million in 1999, the company said.
Cadence, based in San Jose, supplies software and design services to manufacturers of semiconductors, computer systems, networks and telecommunications gear. It earned 29 cents a diluted share on an operating basis on revenue of $308.6 million in its fiscal third quarter, ended Oct. 3.
Analysts surveyed by First Call Corp. had projected earnings of 30 cents a diluted share.
Cadence said the restructuring is intended to enhance its competitive position and improve cost effectiveness.
Shares of Cadence surged $5.31, to $25.31, on the New York Stock Exchange.
