Is Spansion getting ready for a fire sale?
The troubled flash memory maker is cutting approximately 3,000 jobs, or 35 per cent of its workforce amid a sinking market.
Most of the cuts will come at the company’s manufacturing sites.
The company expects that when complete, this reduction in force will result in approximately $25 million in cash charges, during the first half of 2009, and provide approximately $225 million in annual cash cost savings.
Spansion defaulted on ChipMOS debt
In a related news, ChipMOS said it ended its services contract with Spansion – which started in December 2005 – after it defaulted on a $29 million debt. Spansion currently has an account receivable with ChipMOS of approximately US$73 million.
The Taiwanese chip testing and packaging maker will provide future services to Spansion but with payment terms of cash on delivery.
