Atmel Cuts 249 Jobs In Colorado Springs

By: KKTV 11 News
By: KKTV 11 News

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.


You must be logged in to post comments.

Username:
Password (case sensitive):
Remember Me:

Read Comments

Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Betty Location: C/S on Dec 16, 2008 at 11:31 PM
    Another bad thing about the layoffs is that not all of the shifts have been notified. I know C and D shifts have not even been to work yet to see if they even have a job. The word was out on the internet before the C and D shifts knew about the layoff and the number of people that it would effect. Now they are nervously waiting to go to work and see if they will have a job once they get there. That is some holiday present for them. I am sad for everyone who was laid off and I wish the best of luck to you. I think Atmel has gone about this the wrong way and at the wrong time of year!!!
  • by david Location: downtown on Dec 16, 2008 at 06:47 PM
    About.com reported that employers and recruiters use these 3 job sites most to find quality candidates. (good luck to those looking) www.linkedin.com (professional networking) www.indeed.com (agreegated listings) www.realmatch.com (matches you to jobs) Whole Top 10 list here: http://jobsearch.about.com/od/joblistings/tp/jobbanks.htm
  • by unemployed Location: C/S on Dec 16, 2008 at 09:40 AM
    I dont know where the $4 million in severance is going too. All i gott was 2 weeks paid,and no job a week befor Christmas
  • by jonathon Location: atmel on Dec 16, 2008 at 01:01 AM
    its sad..i was lucky to keep my job but cant help to think of the others left in the cold by this cruel and harsh company..
  • by DAVID CLARK Location: COLORADO SPRINS on Dec 15, 2008 at 03:23 PM
    KKTY.COM WEATHER. PLEASE UDATE MORE OFTEN AND CONTINUE TO UPDATE TIME THRU 6:00 A.M. AND 8:00P.M. THNAK YOU.
  • by adam Location: colorado springs on Dec 15, 2008 at 02:45 PM
    merry christmas!
KKTV 520 E. Colorado Colorado Springs, CO 80903 Office: (719) 634-2844 Fax: (719) 632-0808 News Fax: (719) 634-3741
Copyright © 2002-2016 - Designed by Gray Digital Media - Powered by Clickability 36178724 - kktv.com/a?a=36178724
Gray Television, Inc.