Tower to fire 40 in Israel

Tower Semiconductor will fire 40 of its 1,200 employees in Israel as layoffs will be made in all departments.

Sources inform ''Globes'' that specialty foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) will fire 40 of its 1,200 employees in Israel. Layoffs will be made in all departments.

Tower, led by CEO Russell Ellwanger, has R&D operations as well as manufacturing activity at its fabs in Migdal Ha'Emek: the old Fab 1, which is currently operating at 85% capacity; and Fab 2, built in the early 2000s, and which is operating at just 60% capacity. In view of the low activity, the company shuts the fabs down on every other Sunday.

Tower also has a fab in California, which it acquired through the acquisition of Jazz Semiconductor in 2008, and which is operating at high capacity; and a fab in Nishiwaki, Japan, which it acquired from Micron Technology Inc. (NYSE: MU), in 2011, and which is operating at 30% capacity.

"As part of the company policy and in accordance with its annual operation plan, we regularly implement efficiency and improvements which align company activities and resources to the required performance and changing market," said Tower. "These actions include (a) adjusting the organizational structure; (b) an annual process of personnel ranking and replacing the lower performance; and (c) executing worldwide synergies across the entire organization. This year’s operating plan is targeted to enable GAAP net profit."

Published by Globes [online], Israel business news - - on January 20, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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