Magma (San Jose, Calif.) said the measures are expected to reduce total annual costs by approximately $20 million in fiscal year 2010. Magma said expects to record restructuring charges ranging from $2.75 million to $3.75 million in its fiscal 2009 third quarter, ended Feb. 1.

"We are taking steps necessary to align our expenses with the revised business outlook we announced in December, reflecting the state of the global economy,'' said Roy Jewell, Magma president and chief operating officer, in a statement.

Jewell said the cuts would affect company operations in all geographies and in all departments.

Magma cut about 10 percent of its workforce last October. At the time, Magma had about 1,000 employees worldwide.

Magma said it instituted a 20 percent salary reduction for senior management during the fiscal third quarter, followed by a smaller salary reduction for most other employees. Magma closed two sales and support offices in North America and one in Europe, and plans to consolidate its Beijing operations into a single facility and its Shanghai operations into a single facility.

Magma said it would continue to operate in 11 countries with facilities in 19 cities.

"Discussions with major customers during the last several quarters confirmed that the actions we're taking now are in the best interest of our company's stakeholders for both the near and long terms," Jewell said.

The company said it would provide more details on the cost-cutting measures during its third quarter earnings call on Feb. 26.

Also Thursday, Magma said it licensed its automatic test pattern generation (ATPG) technology to LogicVision Inc. for undisclosed terms. LogicVision will develop, market and support ATPG and ATPG compression solutions based on advanced technologies developed by Magma, the company said.

Kevin Moynihan, general manager of Magma's Design Implementation business unit, said Magma would continue to focus on core products in implementation, physical verification and circuit simulation while LogicVision marketed the ATPG technology.