Workers at TI France have basically gone on ''strike,'' thereby slowing product development at the site, according to a source within the chip maker. Seeking to resolve the matter, TI (Dallas) and workers at the company's French unit are in negotiations over compensation packages and other issues, but the talks appear to be hitting the wall, according to a report from the Rivera Radio Web site.

As reported last week, amid weak results for Q4, TI said that it will lay off 6 percent of its workforce, or approximately 1,800 employees. It also announced a voluntary retirement of approximately 1,600 employees.

The cuts affected 305 jobs at the company's French headquarters in Villeneuve-Loubet. Over 800 designers and application engineers work at the site, the home of the Wireless Communications Business Center. The site is also a key center in the development of TI's OMAP cell-phone chip platform.

A TI source said that 35 percent of the company's headcount in Villeneuve-Loubet will be affected by job cuts. ''In this unfavorable economic context, TI decided also to discontinue efforts to sell its wireless merchant baseband business,'' according to a statement released by TI in France last week.

''As a consequence, in total, 305 jobs in TI France will be impacted as part of the reorganization project announced last October, including job impact previously communicated and those associated with the baseband business. Discussions continue with employee representatives and the Works Council meeting continues progressing on the social accompanying measures,'' according to the TI statement.

TI insisted that its Villeneuve-Loubet site will remain a key R&D business center for its digital and wireless systems solutions, including OMAP and custom digital baseband products. The company said it does not anticipate additional job reductions at TI France in organizations impacted by the current reorganization project.

TI has offered compensation to fired employees, but many of them remain bitter despite the discussions with French agencies. ''Compared to the recent layoffs at HP, Atmel and ST (in France), the proposed indemnities are really peanuts and TI France employees are quite furious and have lost their motivation,'' according to one TI engineer at the site.