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Lam Research cuts 15% of workforce
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Lam Research has started a new restructuring program that will see annualized cost savings of approximately US$60 million with the loss of approximately 600 jobs or approximately 15% of its worldwide workforce. The announcement was made in an SEC filing.
The company said that other cost saving measures targeted further annualized saving of US$20 million giving a total of US$80 million in savings as the company suffers from an industry downturn.
The workforce reductions however, would seem high considering that Lam is one of strongest supporters of outsourcing, with much of the tool assembly and systems engineering undertaken by third parties. However, its recent acquisition of SEZ, Austria could indicate that a higher proportion of job losses are targeted at that new division, which was not heavily outsourcing.
This is the second major wave of job losses at the SEZ division since Lam acquired the company earlier this year.