After announcing layoffs to 1,200 Richmond area workers in October, struggling computer chip maker Qimonda AG is cutting back employees’ hours by 10 to 20 percent at its Eastern Henrico plant, according to source at the company. Consequently, pay will fall 10 to 20 percent for workers at the plant.The reduced hours will probably take effect soon, according to the source, and generally require employees to give up one shift per pay period, which which also cut down on overtime.
A company spokesperson said Qimonda does not comment on pending cuts for competitive reasons.
About 1,500 Richmond workers will be employed by the company.
This is the latest blow to a company fighting for survival. Qimonda has not been profitable since the second quarter of 2007. The company is scaling back Richmond production of the memory chips, which are used in devices such as computers and phones. The worldwide supply has driven down the price, and a global slowdown is sapping demand.
On Monday, the German chip manufacturer delayed the release of fourth quarter and full-year earnings and said it hopes to find an investor or strategic partner soon. It also said it could run out of cash early next year if it can not find a suitor.
Qimonda also said Monday that it will cut 1,550 jobs in Germany, or about half of its workforce there. The company is seeking subsidies from the German state of Saxony.
Aaron Kremer is the BizSense Editor. Please send story tips to [email protected].
After announcing layoffs to 1,200 Richmond area workers in October, struggling computer chip maker Qimonda AG is cutting back employees’ hours by 10 to 20 percent at its Eastern Henrico plant, according to source at the company. Consequently, pay will fall 10 to 20 percent for workers at the plant.The reduced hours will probably take effect soon, according to the source, and generally require employees to give up one shift per pay period, which which also cut down on overtime.
A company spokesperson said Qimonda does not comment on pending cuts for competitive reasons.
About 1,500 Richmond workers will be employed by the company.
This is the latest blow to a company fighting for survival. Qimonda has not been profitable since the second quarter of 2007. The company is scaling back Richmond production of the memory chips, which are used in devices such as computers and phones. The worldwide supply has driven down the price, and a global slowdown is sapping demand.
On Monday, the German chip manufacturer delayed the release of fourth quarter and full-year earnings and said it hopes to find an investor or strategic partner soon. It also said it could run out of cash early next year if it can not find a suitor.
Qimonda also said Monday that it will cut 1,550 jobs in Germany, or about half of its workforce there. The company is seeking subsidies from the German state of Saxony.
Aaron Kremer is the BizSense Editor. Please send story tips to [email protected].