Semiconductor maker Spansion announces employee furlough
Tuesday, December 9, 2008 by Austin Monitor
Spansion, which makes energy- efficient flash memories, has notified the City of Austin that it is initiating a three-week furlough beginning December 13. “During the furlough, all operations will cease and employees will not report to work,” according to Rodney Gonzales, acting director of Economic Growth and Redevelopment Services Office. Gonzles notified the Mayor and Council in an email this afternoon.
The company, which is based in Sunnyvale, CA., had no immediate comment. However, in a recent statement on its website, the company stated: “In anticipation of a weak holiday season, Spansion’s customers are shutting down factories, and slowing down manufacturing run rates. As a result, Spansion anticipates that net sales for its fourth quarter of 2008 will be approximately 20% lower than its previous quarter. Spansion is taking action by cutting COGS (cost of goods sold) by approximately 15%, and further reducing operating expenses.”
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