The drop in demand for electronic devices is costing at least 40 people their jobs at Cambridge-based CSR.
The chipmaker admitted this morning that the economic slowdown is hitting its customers – makers of mobile phones, digital music players and in-car navigation systems.
With profits in the last three months down by almost 50% the company is now launching a $20m cost-cutting plan, under which between 40 and 50 positions will go.
CSR makes Bluetooth and Wi-Fi chips that allow electrical devices to communicate with each other and the Internet.
Today's warning comes just a couple of weeks after a sharp drop in revenue at fellow chip firm Wolfson, whose products are used in Apple's iPhone and iPod.
If CSR and Wolfson are suffering today, the retail sector won't be far behind. Tech gadgets have been a key product line for many retailers for years – so if the likes of Nokia and Apple are cutting production now then there could be some nasty shocks on the high street this Christmas.
