SANTA CLARA, Calif.-- In an attempt to return to profitability, memory supplier Alliance Semiconductor Corp. here today announced it will cut its worldwide workforce by 10%, and the company said its remaining employees will take a 5-to-15% pay cut effective Oct. 1.
Alliance Semiconductor did not release a headcount for the layoffs, but previous information shows the company employing about 200 workers. Most of the eliminated positions are in Santa Clara, the company said.
"Prolonged economic weakness and political uncertainty have caused a continued downturn in the technology market," said N.D. Reddy, chairman, president and CEO of Alliance. " The belief in a rapid recovery has diminished and we regret having to take these actions. However, the need to reduce our expenses and return to profitability is essential."
Two weeks ago, Alliance said it expected revenues to sequentially fall 50-to-60% in the current fiscal quarter from $12.0 million in the prior period (see Sept. 12 story).
Alliance today said it is also scheduling of corporate closures during the 2001 holiday season. It will shutdown the entire week of Thanksgiving (Nov. 19-23) and two weeks for the Christmas holidays, beginning Dec. 24, in order to reduce expenditures in what is normally a slow period of activities.