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Globalfoundries prepares job cuts

Globalfoundries prepares job cuts

Business news |
By Peter Clarke


Globalfoundries has confirmed it is cutting jobs and putting in place a hiring freeze, according to reports.

On Tuesday November 8 Globalfoundries said it was looking to cut operating expenses by $200 million annually as it announced its 3Q22 financial results. On Friday November 11 the company informed employees of the coming job cuts without disclosing when they would occur or the size and range of the cuts.

The company made a net income of US$368 million on revenue of $2.074 billion in 3Q22, an increase of 22 percent year-over-year. The forecast for 4Q22 revenue is US$2.05 billion and US$2.10 billion.

The company said in a conference call with analysts that it expects to close the sale of the former IBM East Fishkill wafer fab to OnSemi by the end of the calendar year with a gain on sale in the fourth quarter that will be in the range of $350 million to $400 million.

Globalfoudries is majority owned by Mubadala, the sovereign wealth fund of the Abu Dhabi and is one of several companies seeking funds from the US government via the $52 billion CHIPS Act to expand domestic chip manufacturing. Globalfoundries like Intel Corp.

A website called www.thelayoff.com features numerous posts from Globalfoundries employees discussing their potential fates and options. There is speculation that Globalfoundries could be looking to cut 2,000 employees although whether that includes about 1,000 employees at East Fishkill that it will be exporting to OnSemi is not clear. Globalfoundries has about 15,000 employees worldwide including about 3,200 in Dresden, Germany

Related links and articles:

www.globalfoundries.com

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