GlobalFoundries announces hiring freeze and layoffs

GlobalFoundries is currently the fourth-largest wafer foundry in the world and would be listed in October 2021. According to Bloomberg, on a recent earnings call, GlobalFoundries announced a hiring freeze and layoffs as part of its plan to reduce operating expenses by $200 million a year.

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“Industrie: Werk GLOBALFOUNDRIES Dresden, Deutschland” by MWM Energy is licensed under CC BY-NC-ND 2.0

Revenues hit a record $2.1 billion, up 22% year-over-year, according to GlobalFoundries’ third-quarter 2022 results. With big customers like Qualcomm and MediaTek on hand, GlobalFoundries said little growth is expected in the next quarter as chip demand slows. Its chief executive, Thomas Caulfield, said on the earnings call that some customers have requested downward revisions to shipments for 2023, especially in the first half, and acknowledged that macroeconomic and geopolitical challenges persist.

According to Dave Reeder, chief financial officer at GlobalFoundries, plans are being sought to control costs to save $200 million a year, much of which comes from cutting expenses. GlobalFoundries did not disclose the specific details of the layoffs, such as how many jobs were affected and which businesses fell on them.