Beleaguered computer chip manufacturer Qimonda announced this morning that it will close its Richmond operation, letting go around 1,550 of its 1,600 remaining employees.
Employees will not receive any severance.
Five-hundred employees will leave immediately, according to company spokesman Glen Haley with another 500 leaving over the next month. The company will keep around 50 employees to monitor the equipment, Haley said. The plant is located in eastern Henrico County.
Manufacturing of the memory chips will cease within a week, Haley said.
Over the last week, some suppliers stopped delivering the materials needed to manufacturer the chips fearing they would not be paid.
In October the company laid off some 1,200 workers. Their severances packages are still safe, according to a company spokesman.
Qimonda is a German company and filed for bankruptcy there.
“We have been here for around 12 years. This is devastating news. This has been a real successful venture. The team here is outstanding. It’s just extremely painful for many of the folks here who are affected,” Haley said.