SAN FRANCISCO—NOR flash memory vendor Spansion Inc. will cut 750 jobs, or about 20 percent of its workforce, in connection with cost-cutting measures announced last week, the company said in a regulatory filing.
Last week, in reporting its quarterly results, Spansion (Sunnyvale, Calif.) said it would close a test and assembly facility in Kuala Lumpur and consolidate its test and assembly operations into a single existing facility near Bangkok.
In a filing made with the U.S. Securities and Exchange Commission Wednesday (Nov. 2), Spansion said about 610 of the 750 jobs being cut are from the Kuala Lumpur facility.
Spansion said it expects the actions to increase test and assembly efficiencies through consolidation of its facilities. The company said last week it expected to save about $30 million by closing the Kuala Lumpur facility, which is expected to be finalized in the first quarter of 2012.
Spansion said it estimates that the workforce reduction and closing of the Kuala Lumpur facility will result in cash and non-cash charges of approximately $30 million to $56 million, respectively. About $24 million is expected to be cash, from the fourth quarter of fiscal 2011 through the third quarter of fiscal 2012, the company said.
Of the expected cash charges, about $14 million is associated with one-time termination benefits, approximately $5 million is associated with contract termination costs and approximately $5 million is associated with the expense of facility asset transfers, Spansion said.
Spansion's test and assembly facility near Bangkok is in the Nonthaburi province, about 20 miles away from the flooding that has forced the closure of a number of manufacturing facilities in Thailand in recent weeks. The company said earlier this week that the flooding has had no impact on the company's production or shipping. A few of Spansion's employees live in the impacted region, but all are safe, according to the company. Spansion said it is taking proactive steps to ensure continued customer support.