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Ramtron cuts 17% of workforce and employee wages
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Colorado-based FRAM supplier Ramtron International Corporation has joined the fray of semiconductor companies cutting jobs and reducing salaries in an attempt to reduce costs and remain competitive in the ailing market. The company plans to lay off 17% of its workforce and reduce the salaries of the remaining 102 staff by between 5 and 12%, thereby reducing its 2009 expenses by approximately $5.1 million.
Charges arising from the changes will amount to $5.8 million during the first half of 2009, approximately $4.8 million of which will be non-cash impairments of goodwill, long-term assets, and purchased IP associated with the company’s Canadian operation. The $1 million remainder will be accrued from the staff reduction.
“This restructuring preserves Ramtron’s financial stability and operational flexibility while we work toward establishing a new foundry at IBM, which is a key objective intended to enhance new product development and lower manufacturing costs,” said Bill Staunton, Ramtron’s CEO. “In light of the uncertainty surrounding current economic conditions, we decided to take pre-emptive steps to align the company’s cost structure with a very conservative annual revenue level that is projected lower than our previously stated 2009 annual revenue guidance.”