AMD spin-off to cut third of its workforce
Flash memory maker Spansion has announced it will cut about 3,000 jobs,
or 35 percent of its total workforce. Most of the cuts will be made at
Spansion's manufacturing sites, and hundreds are to loose their jobs in
Austin.
"The global recession is forcing us to make this very difficult
decision in order to bring our costs in line with the current
expectations for significantly reduced revenues," said Spansion CEO John Kispert.
The struggling chipmaker expects $25 million charges as a result of the
cuts, but it will save about $225 million a year thanks to them.
Spansion stocks closed at 5 cents yesterday, following a 10 percent
drop.