Monday, December 5th 2022

GlobalFoundries Said to be Cutting 800 Jobs Despite Record Revenues in Q3

Despite reported record revenues of US$2.1 billion in the third quarter of this year, as well as a record net income of US$336 million, GlobalFoundries is said to be cutting its workforce by as many as 800 people. The job cuts are reported by VTDigger, a local newspaper in Vermont, where GlobalFoundries headquarters are located. According to the paper, GlobalFoundries are looking at cutting back on staff at all its global operations, but it's currently now known where the biggest cuts will take place. According to VTDigger, GlobalFoundries has around 14,000 employees globally, which makes the headcount cut around 5.7 percent of its workforce.

Based on comments by an anonymous employee, it was a small number of job cuts that were initially expected inside the GlobalFoundries. It's possible that contractors will be the ones being sacrificed in the first place, as the company has no less than 800 contractors just at its headquarters in Vermont, plus another 2,000 full time employees. GlobalFoundries has fabs in Vermont, New York, Singapore and Germany, but based on the comments by the employee, it's most likely that the major job cuts will take place in the US and Singapore, due to Germany's stricter employment laws. The job cuts are expected to start taking place this month.
Source: VTDigger
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31 Comments on GlobalFoundries Said to be Cutting 800 Jobs Despite Record Revenues in Q3

#1
TheinsanegamerN
More white collar job cuts, as companies realize most of their management stack is pure bureaucracy.
Posted on Reply
#2
lemonadesoda
As a counterpost to speculation it isn’t Germany, I think it is. I’m going to guess they are going to cut positions in Germany. Makes economic sense. Costs are prohibitively high, German salaries and taxes make it an expensive place to hire, and German employment regulations doesn’t like any employer to “manage based on performance” of employees. It is impossible to fire people, unless you make positions disappear ie through shutting departments or services. But you are required to announce it first. So they just did. Goodbye Germany!
Posted on Reply
#3
mb194dc
Unfortunately plenty more where this comes from in the next 12 months most probably.
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#4
TheinsanegamerN
lemonadesodaAs a counterpost to speculation it isn’t Germany, I think it is. I’m going to guess they are going to cut positions in Germany. Makes economic sense. Costs are prohibitively high, German salaries and taxes make it an expensive place to hire, and German employment regulations doesn’t like any employer to “manage based on performance” of employees. It is impossible to fire people, unless you make positions disappear ie through shutting departments or services. But you are required to announce it first. So they just did. Goodbye Germany!
Most of their german employees are fab workers though. I could see them not being affected so much as the corporate offices in america.
Posted on Reply
#6
Aquinus
Resident Wat-man
TheinsanegamerNMore white collar job cuts, as companies realize most of their management stack is pure bureaucracy.
That's not the problem. Most companies hold debt to fund their initiatives. As interest rates around the globe have been going up, the amount that businesses are having to repay on this debt is increasing by a very significant amount. If your company holds 1.3B USD in debt or so, you're looking at a 15m USD a month increase from the interest hikes in the US thus far. Forget the increased cost of labor and almost everything else. This is happening across the board for a lot of companies and it's a direct result of low interest rates and high levels of borrowing from businesses because the conditions were good for borrowing. Now the conditions are far worse and the cost of that debt is going to be gut punch. On top of that with interest rates high, that's added incentive to reduce the amount of debt to get that cost under control, so laying people off is for two reasons: 1, to offset the increased cost of interest on already held debt and 2, to accelerate the repayment of that debt to more quickly drive down that recurring cost.

Imagine if you didn't have a fixed rate mortgage and your interest went up by 3%, you'd probably have some anxiety to say the least. Businesses are basically in that boat.
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#7
Bomby569
Just another big company doing it. It was more to do with the economic climate then any internal structure, white or blue, Germany or US.
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#8
bonehead123
As is the norm, start cutting from the bottom 1st, as the little people (and their families) don't mean squat to the greedy, self-serving, overpaid slugs at the upper levels, many of which do very little but get paid 100-800% moar than those at the bottom who actually work for a living....

Capitalism 101 at it's finest, ONCE AGAIN :(
Posted on Reply
#9
DeathtoGnomes
bonehead123As is the norm, start cutting from the bottom 1st, as the little people (and their families) don't mean squat to the greedy, self-serving, overpaid slugs at the upper levels, many of which do very little but get paid 100-800% moar than those at the bottom who actually work for a living....

Capitalism 101 at it's finest, ONCE AGAIN :(
I think the bulk of the cuts will be contractors, which would be the bottom of the ladder. Also, I think the who, what, where and why of this PR is missing some information.
Posted on Reply
#10
ThrashZone
Hi,
Yeah ironic number of cuts and amount of contractors just in Vermont but I'm sure they will spread the pink slip grief around.
Posted on Reply
#11
TheLostSwede
News Editor
DeathtoGnomesI think the bulk of the cuts will be contractors, which would be the bottom of the ladder. Also, I think the who, what, where and why of this PR is missing some information.
It's not a press release...
Posted on Reply
#12
AnarchoPrimitiv
bonehead123As is the norm, start cutting from the bottom 1st, as the little people (and their families) don't mean squat to the greedy, self-serving, overpaid slugs at the upper levels, many of which do very little but get paid 100-800% moar than those at the bottom who actually work for a living....

Capitalism 101 at it's finest, ONCE AGAIN :(
Amen... all companies care about is short term stick prices, and if throwing out the work forcebis necessary ro do that, then that's what they'll do....ignoring the fact that workers having money to spend is what keeps recessions from getting worse. This is why state owned or partially state owned industries are an excellent way of acting as a backstop against recession....since they're state owned and don't have to run at a profit, they maintain their labor force, their labor force maintains disposable income, and our consumer based economies continue working.....it's worked great in the past.
Posted on Reply
#13
Wirko
bonehead123As is the norm, start cutting from the bottom 1st, as the little people (and their families) don't mean squat to the greedy, self-serving, overpaid slugs at the upper levels, many of which do very little but get paid 100-800% moar than those at the bottom who actually work for a living....

Capitalism 101 at it's finest, ONCE AGAIN :(
Capitalism is not the same everywhere, forever, since ever. What you see now is financial capitalism. If you're unsure how it can benefit you,
- don't buy products from hated company X
- don't seek work at hated company X
+ do buy stocks of hated company X.
Posted on Reply
#14
64K
I hope GlobalFoundries cuts some of the fat from the executive tier then but I doubt they will.
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#15
defaultluser
record quarter, except with a big-fat downturn eying them quite obviously?
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#16
DeathtoGnomes
TheLostSwedeIt's not a press release...
IDK, its close enough, Its like Intel, PRs disguised as leaks.
Posted on Reply
#17
TheLostSwede
News Editor
DeathtoGnomesIDK, its close enough, Its like Intel, PRs disguised as leaks.
Not a leak either, a report from a local Vermont newspaper.
Posted on Reply
#18
ThrashZone
TheLostSwedeIt's not a press release...
Hi,
Kind of splitting hairs here
So where did the local paper get the info from ?
I'd guess a local press release or leak
But really does it matter :laugh:

Local paper has mental telepathy going on ?
Posted on Reply
#19
TheLostSwede
News Editor
ThrashZoneHi,
Kind of splitting hairs here
So where did the local paper get the info from ?
I'd guess a local press release or leak
But really does it matter :laugh:

Local paper has mental telepathy going on ?
By talking to people that works at the company?
Isn't that normally how it works?
Posted on Reply
#20
mechtech
TSMC Arizona plant should have some applications incoming.
Posted on Reply
#21
TheinsanegamerN
bonehead123As is the norm, start cutting from the bottom 1st, as the little people (and their families) don't mean squat to the greedy, self-serving, overpaid slugs at the upper levels, many of which do very little but get paid 100-800% moar than those at the bottom who actually work for a living....

Capitalism 101 at it's finest, ONCE AGAIN :(
This ignores that the majority of a C suite's "pay" is in things like stocks, not liquid cash. In a liquid crisis gutting the top wont solve much in the short run.

Also, LMAO at the top being lazy. Middle management? Yeah, sure. But the top? There's a reason so many of them did coke in the 90s and still do today. The bureaucracy in the middle is the biggest cash sink in most companies, which is why you are seeing so many white collar job losses but nowhere near as much in blue collar. Same reason tesla got rid of office owrkers but hired more factory workers.
Posted on Reply
#22
ThrashZone
TheLostSwedeBy talking to people that works at the company?
Isn't that normally how it works?
Hi,
That's how leaks are usually
Heads doing this it would be a public release.
I still don't get why you're splitting hairs though but carry on sir :cool:
Posted on Reply
#23
TheLostSwede
News Editor
ThrashZoneHi,
That's how leaks are usually
Heads doing this it would be a public release.
I still don't get why you're splitting hairs though but carry on sir :cool:
So what you're saying is everything in the news, are leaks then?
To you there's only leaks and PR, nothing else?
Posted on Reply
#24
claes
If you read the source it’s not PR or a leak. The exec is identified by name and the employee anonymously out of fear of retribution.
Posted on Reply
#25
ThrashZone
TheLostSwedeSo what you're saying is everything in the news, are leaks then?
To you there's only leaks and PR, nothing else?
Hi,
Nope there are also rumors but no special section for that so they land in the news section and are speculated here.
On the record = public release
Off the record = leak or rumor.
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