GlobalFoundries cuts jobs to slash operating costs

GlobalFoundries is planning job cuts to reduce overhead amid weakening demand for semiconductors. The contract manufacturer informed workers at the end of last week that there would be layoffs, but did not give details of how many employees a timeframe or sense of scope. GlobalFoundries previously discussed plans to create …

[Andy The Hat]

USA is pumping billions into the CHIPS programme, there seem to be reported chip shortages everywhere - mainly due to Covid and US/Asia policies screwing the supply chain - yet GF is laying off US production staff due to "low demand" ...

What's the fiddle here? Are GF looking to ramp down existing facilities/workforce simply to attract loads of CHIPS investment funding to build a "new" production facility?

[Yet Another Anonymous coward]

Probably not even thinking that far ahead. Quarterly report due and share price will drop I'd they don't have an excuse for losses and a guaranteed way to reduce them.

We're cutting staff is the default

[kurkosdr]

GlobalFoundries is a widgets manufacturer now, being stuck at 12nm lithography and without any plans to develop a new process node (they abandoned their plans for 7nm in 2018). This means that GlobalFoundries isn't much different from a spoon manufacturer in the business sense now. This means that:

1) They may not be able to produce the chips there is a shortage (demand) for

2) They don't need that many people to do R&D

3) They have to be ruthless about costs since the products they produce grow less premium every year. They make some money via specialized 12nm nodes, but that will be eventually exhausted too.