Numonyx Inc. is the latest flash memory maker to fall foul of the weakness in the global flash memory market. Sources inform ''Globes'' that the company, which was launched less than four months ago, has introduced a series of swingeing cutbacks which will also include the firing of dozens of contractor employees at its fab in Kiryat Gat.
Numonyx expected, when it was launched earlier in March, to reach operating profitability by as early as the end of this year, but it now appears that the company will not meet the goal it set itself as a result of the weakness on the market globally.
Aside from the global slowdown, Numonyx is also struggling to cope with the rising costs of operating its Kiryat Gat fab, as a result of the fall in the shekel-dollar exchange rate. In addition to the job cuts, the company will also cut overseas travel on company business.
A company spokesperson said, "Numonyx became an independent business at a time of ongoing weakness in the global economy, and profound instability in the memory industry. This instability required of us to streamline our operations and cut expenditure on the one hand, and introduce a sense of rationale in our planning for the coming year. This has meant that we have had to hire staff for short-term projects only. As part of the periodical assessment of our business operations, it was decided to take on 50 contractor employees as full-time staff members and release some of those contractor employees who were employed on projects that have now been completed. We will continue to monitor developments on the market and act accordingly.
Numonyx was formed as joint venture by Intel Corporation (Nasdaq: INTC) and STMicroelectronics NV (NYSE: STM).
Published by Globes [online], Israel business news - www.globes-online.com - on July 28, 2008
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