GlobalFoundries planning job cuts, hiring freeze, Bloomberg reports
The cost-saving program comes after the Malta-based chipmaker reported record financial results
Nov. 14, 2022
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GlobalFoundries, which operates its Fab 8 computer chip factory in Malta, is planning job cuts and a hiring freeze amid poor “macroeconomic” conditions impacting the tech sector, according to Bloomberg.
Times Union file photo
MALTA — Despite reporting record earnings last week, GlobalFoundries is planning company-wide job cuts and a hiring freeze, according to a Bloomberg report.
The Bloomberg report said that GlobalFoundries, which employs about 3,000 people at its headquarters and Fab 8 computer chip factory at the Luther Forest Technology Campus in Saratoga County, informed employees on Friday of the cost-cutting measures.
The Times Union could not immediately reach a GlobalFoundries spokesperson for comment.
However, Bloomberg said the company did not specify how many jobs would be eliminated or when any layoffs would occur. An unnamed GlobalFoundries spokesperson was quoted in the story said the “focused actions’ were due to the “macroeconomic environment” that has led much of the technology industry — along with most other chipmakers — to reduce costs and payroll.
When GlobalFoundries issued its earnings report last week, it told analysts during a conference call that it was looking to shed $200 million from its annual expenses.
It reported record revenues of $2.1 billion for the third quarter, an increase of 22 percent over the same period last year. Profit for the quarter was $336 million, another record for the company.
The chip industry is notoriously volatile, and chipmakers will cut jobs and other expenses if they forecast difficult economic conditions due to the enormous costs of chip manufacturing. As a third-party chipmaker, GlobalFoundries makes chips for other companies, and so margins are relatively thin to begin with.
