GlobalFoundries Employee Buyout Result of Revenue Drop

Analyst skeptical about revenue downturn
Jessica Lipsky, EETimes
9/14/2015 05:55 PM EDT

SAN FRANCISCO – GlobalFoundries is offering a buyout program to members of its U.S. workforce following a downturn in revenues for the foundry industry over the past nine months.

GlobalFoundries officials cited an 11% dip industry revenue as a driver for the buyouts and did not disclose company finances. While GF said its 11% figure comes from “a company analysis of industry reports,” some find that number to be too steep.

“In the past year, pricing and cost competition in the foundry business has become more intense. A few factors can be attributable to this such as the slowdown for the device and product markets for smartphone, tablet PC and laptop computers,” GF officials told EE Times. “In an effort to react to achieve a more competitive cost structure, we are offering our US-employees a voluntary separation program.”

Click here to read more ...