GlobalFoundries warns workers of layoffs; unclear if Vermont plant impacted

ESSEX JUNCTION, Vt. (WCAX) – Are job cuts coming to Vermont’s largest employer? Chipmaker GlobalFoundries despatched a memo to workers saying that they may quickly downsize their workforce footprint.

GlobalFoundries confirms they’re freezing all new hires and are starting what they name “targeted actions” to scale back the dimensions of their workforce. What’s not clear is what number of jobs they’re chopping, which positions or whether or not the cuts will occur at their Essex Junction facility.

The state Division of Labor says they haven’t but obtained warning of any layoffs in Vermont.

In an announcement, a spokesperson for GlobalFoundries stated, ” … On the heels of a robust third quarter with strong fourth quarter steering, we face quickly creating uncertainties of the worldwide financial system, together with inflation, continued elevated power prices, and fast rate of interest will increase which might be impacting our business and GF.”

The challenges GlobalFoundries faces will not be distinctive. They and different chipmakers are nonetheless reeling from the consequences of the pandemic.

I spoke with Matt Gallagher, a lecturer at UVM who has labored within the semiconductor business. He says there was an enormous pandemic demand for merchandise that use chips, like vehicles, computer systems and cellphones and that demand is starting to wane.

“It feels like now issues have bounced and there was a little bit of a correction and the demand has softened,” Gallagher stated.

However he provides that automobile producers will doubtless preserve a few of their orders.

This information comes on the heels of an enormous investment– $30 million heading International’s method in federal earmarks to develop the following technology of laptop chips. And there’s doubtless extra money on the way in which because of the federal CHIPS Act meant to bolster home semiconductor manufacturing.

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