GlobalFoundries to cut 5% of its jobs

Chip manufacturer GlobalFoundries is cutting its workforce: 5 percent of jobs will disappear. The wave of layoffs is part of a reorganization to improve the financial position.

The nine hundred, of the total of eighteen thousand employees, are disappearing from a variety of departments and regions, a GlobalFoundries spokesperson told EETimes. The reorganization would have no consequences for the roadmap and no fabs would be closed.

GlobalFoundries is the second largest chip maker in terms of revenue, but the company struggles to compete with number one, TSMC. According to research firm IC Insights, it had a turnover of 32.2 billion dollars last year, compared to 5.86 billion from GlobalFoundries. The chip company, which has been spun off from AMD, is also lagging behind with 7nm production and therefore does not expect to make smartphone processors for the high-end segment. Instead, the company focuses on asics and retaining existing customers such as AMD and IBM.