Atmel Corporation has announced it is cutting 11% of its North American workforce. And that includes cuts in Colorado Springs.
Atmel officials says this equals 275 jobs - 249 of those job cuts would occur at Atmel's factory in Colorado Springs.
Atmel says the cuts will cost $4 million in severance expenses, but will save the company $18 million a year moving forward.
In a written release, Atmel cited global economic weakness and a rapid slowdown in the demand across the semiconductor industry as the main reasons for the cutbacks.
Atmel is estimating some big drops in revenue for the fourth quarter of 2008. They expect a 12 to 18 percent decline from the third quarter.
"Atmel, like many companies in our industry, is seeing the effects of the broader economic decline, particularly in our memory and automotive product lines," said Steven Laub, Atmel's President and Chief Executive Officer.
"We believe the actions we are taking to reduce costs and manufacturing capacity, together with our previously announced transformation plan, will mitigate these market challenges and support Atmel's continued product leadership and market share gains."
Other money-saving steps include a 10-day shutdown for non-manufacturing employees, a hiring freeze for non-critical positions, and strict controls on discretionary spending.
These moves are in addition to an 11-day shutdown of the manufacturing facilities in Colorado Springs, which had already been announced.
Atmel describes itself as "a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, non-volatile memory and radio frequency (RF) components."
Stay with 11 News and KKTV.com for the latest on this story.
KKTV firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKTV 11 News.
If you believe that any of the comments on our site are inappropriate or offensive, please tell us by clicking “Report Abuse” and answering the questions that follow. We will review any reported comments promptly.powered by Disqus
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.