09:07 AM EDT, 06/27/2024 (MT Newswires) -- Pixelworks ( PXLW ) said Thursday it would cut ts workforce by 16% in operations, research and development, sales, marketing, and administration as part of restructuring efforts.

The company expects the restructuring, which will be substantially completed by the end of Q2, to result in an estimated $1.7 million in charges related to employee severance and benefits, according to a filing with the US Securities and Exchange Commission.

Additionally, the company said that its Pixelworks Semiconductor Technology (Shanghai) Co. unit would pay $1.2 million to terminated employees who hold shares in one of five employee stock ownership entities.

Pixelworks ( PXLW ) said it would largely record the restructuring charges in Q2 and expects to realize annualized savings of about $4 million.