LONDON Recently formed flash memory company Numonyx BV (Geneva, Switzerland) has introduced cutbacks that will include the firing of dozens of contractor employees at its fab in Kiryat Gat, according to a Globes
report. However, the company has also created 50 full-time positions, the report said.
The 200-mm wafer fab was passed to Numonyx by Intel Corp. which joined with STMicroelectronics NV to create the flash memory company at the end of the first quarter of 2008. The fab is in the process of moving its manufacture of NOR flash memory to 45-nm, a step it plans to complete in the fourth quarter of 2008.
Numonyx is struggling to cope with the cost of operating its Kiryat Gat fab, which is rising due to the fall in the shekel-dollar exchange rate, the report said. In addition the company is cutting overseas travel on company business, the report said.
"Numonyx became an independent business at a time of ongoing weakness in the global economy, and profound instability in the memory industry. This instability required of us to streamline our operations and cut expenditure on the one hand, and introduce a sense of rationale in our planning for the coming year. This has meant that we have had to hire staff for short-term projects only," the report quoted a company spokesperson as saying.
"As part of the periodical assessment of our business operations, it was decided to take on 50 contractor employees as full-time staff members and release some of those contractor employees who were employed on projects that have now been completed. We will continue to monitor developments on the market and act accordingly," the report also quoted the spokesperson as saying.
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