Xilinx Stock Drops After Company Announces Job and Other Expense Cuts

Shares of field-programmable gate array (FPGA) manufacturer Xilinx (NASDAQ: XLNX) dropped 10.7% on Wednesday following the company's fiscal 2020 third-quarter report. They dropped slightly more on Thursday. Investors had expected it to be a tough period for the chipmaker, and revenue and earnings did decline, as management had laid out a few months prior.

However, the company had a few unexpected surprises in store for shareholders and employees: a 7% reduction in its workforce through layoffs and a slowdown in hiring, and a cost reduction plan to make business more efficient. It isn't the end of the world, as Xilinx's FPGAs still have a future in the development of data centers, 5G mobile networks, and automotive technology, but cost-cutting at this level tends to throw shade on a stock's growth prospects. Don't panic just yet, though.

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Source Fool.com