GlobalFoundries, the biggest semiconductor foundry behind TSMC and UMC, announced its stunning plan to cut 3% of its global workforce on December 4, 2013.
Major employee cuts have already been made in the company’s Saratoga Fab 8, where 30 support as well as non-technical staff have been asked to leave, and the Singapore plant, which laid off an estimated total of 150 people.
In response to the speculations regarding the layoff situation and whether they have anything to do with the competitive pressures stemming from TSMC or Samsung, GlobalFoundries’ spokesperson, Travis Bullard, had the following to say:
“As we continue to grow our business, we also continue to focus on reducing our operating costs in order to improve our competitive position, prioritize our resources, and establish a solid foundation for sustainable growth… These cost reduction measures are designed to accelerate our ability to build a profitable, competitive and successful global business.”
Calculating on the basis of the company’s 13 thousand employees, it is estimated that a total of 400 people will be laid off in the coming periods.