Wednesday, April 12th 2017

GLOBALFOUNDRIES Cutting Staff Through Earlier Retirements

It would seem business is not as usual for GLOBALFOUNDRIES, which started as the spin-off from AMD's manufacturing arm way back on March 2, 2009. Blaming the capricious chip market's fluctuations, the company is looking to divest longtime employees in all three of its U.S. semiconductor manufacturing plants, including Essex Junction, which it acquired from IBM in 2015 by... receiving a $1.5 billion payment from the company. And as part of the deal, GLOBALFOUNDRIES agreed to be IBM's exclusive provider of semiconductor chips through 2025.

"We go through these ebbs and flows," Spokesman Jim Keller said Wednesday. "Right now we're at a point where some customers delayed their orders. We're in a period where we don't have as much business." The "voluntary separation" program is part of a larger cost cutting initiative that will look for other efficiency savings as well, though "layoffs are also a possibility". Keller would not say how many of GLOBALFOUNDRIES' 2,800 employees at Essex Junction are eligible for the early retirement program. Most of the workers eligible are in "support roles," such as administrative, sales or finance.
Sources: USAToday, VTDigger
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8 Comments on GLOBALFOUNDRIES Cutting Staff Through Earlier Retirements

#1
DeathtoGnomes
Cut managements pay by 10% and they'd save save 5 menial laborers jobs.
Posted on Reply
#2
Raevenlord
News Editor
DeathtoGnomes said:
Cut managements pay by 10% and they'd save save 5 menial laborers jobs.
Probably more than just 5 jobs.

But shhh. We can't advocate for equalization.
Posted on Reply
#3
Vayra86
Well, this stuff happens all the time. Senior employees are generally also the most costly ones with relatively equal skillsets as their junior fellows, so an earlier retirement option really isn't all that special here.

And about cutting cost, in the end it doesn't matter who gets the money, no company wants half their employees sitting there doing nothing. That's the upper management's job! :D
Posted on Reply
#4
rtwjunkie
PC Gaming Enthusiast
Well now, that stinks. That's home for me, and I'm planning a return there after 20 years away. That 2,800 good jobs is already a big reduction from when it was an IBM plant, so that means even less money for the local economy depending how many they lay off. The last thing I want to do is hit my retirement spot as an economy goes into the crapper.
Posted on Reply
#5
Cybrnook2002
Small typo:

"the company is looking do divest" , should be "to"
Posted on Reply
#6
Raevenlord
News Editor
Cybrnook2002 said:
Small typo:

"the company is looking do divest" , should be "to"
Corrected, thank you!
Posted on Reply
#7
john_
Maybe if you wasn't trying to F your main customer, by charging them millions of dollars because you are unable to create a good manufacturing process, or even copy Samsung's, you would have more orders to fulfill? I mean, AMD paying you millions of dollars so they have the option to go elsewhere to make their chips? Maybe you should look at the mirror and recognize failure first and try to fix that instead of pushing people to take early retirement? Just saying...
Posted on Reply
#8
Vinska
Raevenlord said:
"We go through these ebbs and flows," Spokesman Jim Keller said Wednesday.
Wait. Wait. Wait.
Jim Keller? It's not THE Jim F***ING CHIP GOD Keller, is it? Some other Jim Keller, right?
Posted on Reply