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."
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