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Tower Semiconductor to cut costs – and jobs
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Just over a week after Tower Semiconductor’s acquisition of Jazz Semiconductor, Tower has announced that it is implementing cost-cutting measures. While the company claims that it has yet to receive approximately $40 million in overdue grants from the Israeli government, the money-saving steps being taken by the company include the cutting of around 170 employees’ jobs.
The job cuts will bring an expected reduction in spending of
approximately $14 million per annum. Employees in managerial and
support-related functions will be targeted in the job cuts.
The
measures are required due to a combination of factors, according to the
company. The weakening dollar, pressures from foundry wafer pricings,
the overdue grants and the recent takeover of Jazz have all contributed
to a need on the part of the company to cut costs.
Additional
measures being put in place include a planned organizational reshuffle
and sourcing of low-cost materials and spare parts for its
manufacturing operations.