GlobalFoundries, an AMD spin-off that will go public in 2021 and produce enough chips to become the world’s fourth-largest semiconductor maker, has announced it will enact a hiring freeze and begin layoffs. , came in last week’s earnings call reported by bloomberg (opens in new tab)is part of an effort to reduce the company’s operating costs by $200 million annually.
In its earnings call earlier this month, the company, valued at $25 billion after going public in October 2021, reported: Exceeded expectations (opens in new tab)set a new record with revenue of $2.1 billion, up 22% year over year. However, we expect chip demand to slow in 2023 and see little to no growth this quarter.The company will keep costs in check and realize annual savings of $200 million, according to CFO Dave Reeder. We were about to launch a planned ‘initiative’, mostly due to cost cutting.
GlobalFoundries, which makes chips for Qualcomm and MediaTek, confirmed to Bloomberg the job cuts and hiring freeze, but did not elaborate on how many jobs would be affected or what parts of its business would be affected. rice field. .
“Some customers have requested that some of our 2023 shipments be moderated, especially with respect to the first half of 2023,” CEO Dr. Thomas Caulfield said at the beginning of the earnings call. , in a quote released to the media, continued:
He added: Revenue increased 22% year-over-year and he achieved record gross, operating and net profits, making significant progress towards a long-term financial model. We can continue to grow well and have a profitable year. “
GlobalFoundries also announced that it will sell its New York factory to Onsemi in a deal worth $430 million. Used by IBM before GlobalFoundries moved, the factory employs 1,000 people and is now set to move to new owners, but whether these will be included in the layoffs is unknown. The company also received $30 million in funding from the federal government to expedite the “innovation and production” of next-generation gallium nitride-on-silicon chips at its Vermont plant.