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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.

By Síle Mc Mahon

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