Cypress Semiconductor Corp. will fire 500 employees as part of its latest cost-cutting plan, according to a regulatory filing.

The chipmaker, which has about 6,900 workers globally according to The Wall Street Journal, said in a statement it started cutting jobs this week at its corporate headquarters in San Jose, California. The company estimates it will take a charge of $40 million to $50 million in the third and fourth quarters.

“The latest cuts, about 7 percent of the workforce, come about a month after Cypress promoted Hassane El-Khoury to chief executive, replacing company founder T.J. Rodgers, who held the top post for more than three decades and is regarded as one of the most prominent leaders in the microchip industry,” the WSJ reported.

El-Khoury joined Cypress in 2007 from Continental Automotive Systems Inc., a supplier of electronic products for car makers. El-Khoury has helped Cypress build its automotive chip business to about one-third of sales.

Cypress reported a loss of about $623.3 million for the first half of 2016, about double from a year earlier, while revenue rose 25 percent to $869.1 million.