Job cuts at Atmel

Job cuts at Atmel
Tom Foremski
Atmel will cut 650 jobs or about 10 per cent of its work force as it reorganises operations to deal with a slowdown in orders for its EPROMs and price declines in Flash memory.
The company said it is facing an industry-wide glut of products and that the measures it is taking will help it save as much as $120m annually. Atmel warned that the future outlook is poor.
“Industry conditions will remain difficult in the near-term. Due to overcapacity, we believe it is prudent to reduce our cost base to weather the storm and be ready to take full advantage of the eventual upturn in the market. Obviously, we intend to continue investing in areas that are strategically important to Atmel, namely developing new products and technologies within our core competency,” said Atmel CEO George Perlegos.
Atmel has reduced manufacturing levels because of its high inventory levels but will focus on moving production to 0.35 micron and 0.25 micron processes. It hopes to make the job cuts over the next six months largely from attrition and early retirement.

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