Under it latest chief, Lip-bu Tan, Cadence Design Systems (NASDAQ:CDNS) began to implement restructuring measures designed to further streamline operations and position itself for its next phase of strategic growth. The moves will bring the company closer to its core competencies.

Upon completion, Cadence expects to achieve annual operating expense savings of approximately $30 million, through a combination of workforce and other expense reductions. The expected annual operating expense savings take into account additional investments planned for areas of critical importance to the Company's customers, including verification and SoC development.

The company expects to eliminate approximately 225 full-time positions, representing 5% of its global employee base. The reductions come primarily from resizing the worldwide field organization to current business levels, decreasing the level of investment in the manufacturing side of DFM and other infrastructure areas of the business. Because of varying regulations in the jurisdictions and countries in which Cadence operates, these workforce reductions will be realized over a period of time and are expected to be completed in the second half of fiscal 2009. Cadence expects to record a restructuring charge of approximately $20 million to $25 million pre-tax, approximately $18 million of which will be recorded in the second quarter of 2009.