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Electronics Production | June 06, 2008

Spansion cuts global staff by 500

US based Flash memory maker Spansion Inc. is eliminating approximately 500 positions worldwide.
This includes planned consolidations, attrition, and a reduction in regular, contract and temporary workers in manufacturing, engineering, management and administrative support functions.

The action is a part of the company's ongoing strategic effort to improve overall productivity, which led to a $52 million reduction in manufacturing service expenses with foundries and subcontractors in the first quarter of fiscal 2008, compared to the fourth quarter of fiscal 2007. With better factory utilization, including the ramp of the company's 300mm wafer fabrication facility, and higher productivity across the organization, Spansion can reduce its workforce and lower costs, while maintaining its focus on next generation technology development and serving its customers. The workforce reduction is part of this long-term strategy and is consistent with the company's outlook as previously stated on April 16, 2008 in the first quarter earnings press release.

"Spansion is dedicated to creating an organization that is highly efficient, structured for maximum productivity and focused on our core competencies," said Bertrand Cambou, president and CEO, Spansion, Inc. "Our priority is to continue to push the leading-edge of Flash memory technology and reshape the Flash memory industry. With our recent increase in manufacturing output and yields, as well as productivity enhancements throughout the company, we can streamline our organization and further reduce costs, while continuing our rapid pace of innovation."

As part of the move to enhance productivity, the company is pursuing its strategy to increase the ratio of its engineering and administrative functions in lower cost regions, such as Malaysia and China. With Spansion's ongoing focus on continuous improvement and operational efficiency, the company can continue its technology innovation at a lower overall cost.

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