NOR flash memory processor maker Numonyx Inc. will fire 100 of its 1,300 employees in Israel, just one week after Spansion Inc. (Nasdaq: SPSN) declared bankruptcy, as the world's flash memory makers struggle to streamline.
The layoffs follow cuts in shifts at the company's Fab 1 in Kiryat Gat, the shutting of the fab on weekends, and its closing for one week in February. The company has also fired contract workers.
Numonyx will also close Fab 1 during the week-long Passover holiday in April.
It is not known if the company will be taking other cost-cutting measures, but considering the market climate, more extensive cutbacks may be needed in the future.
Numonyx was formed as a spin off of the NOR flash memory activities of Intel Corporation (Nasdaq: INTC) and STMicroelectronics NV (NYSE: STM), and its Fab 1 used to be Intel's Fab 18. The company has tried to avoid layoffs until now.
During Numonyx's last quarterly conference call, president and CEO Brian Harrison said that the company would be compelled to lay off staff worldwide. Demand and prices for NOR flash memory processors have plummeted in line with the drop in the flash memory market in general, even as companies struggle to obtain financing to conduct business.
Numonyx said in response, "The economic crisis that has hit global markets is affecting Numonyx along with every other company in various manufacturing fields. Like everyone else, we're managing our expenses carefully. We will not provide estimates or figures about our measures."
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2009
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