Following its 10 per cent cut in headcount announced in October and the closure of its fab in East Kilbride, Freescale has put in place a raft of cost-cutting measures that reach right across the company.
Executive salaries are to be cut, workers will get five days unpaid leave, there will be no promotions, salaries can't be increased, company contributions to employees' retirement funds will be frozen.
The ten per cent cut in workforce will be implemented throughout 2009 and will see 2,400 employees losing their jobs. This will save, according to Freescale, about $400m in annual costs.
Meanwhile the company is trying to sell its wireless division and says it is talking to several interested parties.
Broadcom is being suggested as a possible buyer as the Southern California company seeks to step up its participation in cellphone ICs.
Cutting pay across the board is a well-established US practice. Another is working harder. In dire industry conditions in the 1980s, Intel introduced the '125' programme in which the calendar targets for all projects were brought forward by 25 per cent, involving longer working days to accelerate new product development.
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