Chipmaker GlobalFoundries to Start Job Cuts and Freeze Hiring

(Bloomberg) — GlobalFoundries Inc., the biggest US-based provider of made-to-order semiconductors, is beginning job cuts and has enacted a hiring freeze.

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The company Friday informed its employees of the impending workforce reductions, without disclosing when exactly they would occur or which divisions would be affected. The chipmaker said Tuesday during an earnings call that it was working on initiatives to lower its operating expenses by $200 million annually.

A GlobalFoundries spokeswoman confirmed the job cuts and hiring freeze, but declined to specify a number, saying the company was “taking focused actions on our workforce.” The chipmaker “had a strong third quarter and solid fourth-quarter guidance, but based on the current macroeconomic environment” is seeking to contain costs, the spokeswoman added.

The company based in Malta, New York, and majority-owned by the government of Abu Dhabi, is among semiconductor producers seeking funds from the US government via the $52 billion CHIPS Act to expand domestic chip manufacturing. In planning layoffs and implementing a hiring freeze, GlobalFoundries is joining many of its peers in the broader technology industries.

Intel Corp. recently said it will undergo cost reductions, which Bloomberg News reported would include a significant number of job cuts. Other chip companies, including Micron Technology Inc., have slowed hiring. Meta Platforms Inc. has started widespread layoffs, while Qualcomm Inc., Twitter Inc., Apple Inc. and Amazon.com Inc. are among those that have paused hiring for many divisions.

On Tuesday, GlobalFoundries said third-quarter revenue jumped 22% and projected sales and profit in the current quarter that topped analysts’ estimates. The company is trying to win share in the market for outsourced chip production and gain enough scale to compete with industry leader Taiwan Semiconductor Manufacturing Co.