GLOBALFOUNDRIES.... Layoffs coming?

[Barnsley]

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

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.

Chipmaker GlobalFoundries to Start Job Cuts and Freeze Hiring

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

www.bloomberg.com

 

[Barnsley]

Is this not a bit odd?

Very good financials, just completing a new FAB in Singapore , and they say they only see a downturn in 1st half of next year only?

 

[Daniel Nenni]

As TSMC said, inventories are at a 25 year high. It looks like GF has high inventories as well, that is the only explanation I can see here. Unless it is just bad management. I really would not want to be an underfunded competitor of TSMC. That will be a difficult life.

 

[Jert]

EVERYBODY in Semi will be freezing hiring, laying off people. Proactive ones already doing it this quarter, but many more will be doing in 1H23.

TVs, mobile phones, PCs, gadgets of all kinds, none is selling or down 30-40% or more (comparing to the good times in CY20-21). The only bright spot today is automotive. But that could too change tune all of a sudden. Macro economy everybody is suffering different problems, some are natural cycles, but many are man-made with crazy policies (Biden giving out free money to everyone so nobody needs to work, Xi perpetually locks people down in the name of Covid but actually for mind control, Putin decided he wants to have fun playing with fire...).

Best example: "We didn't take a broad enough view of our responsibility, and that was a big mistake," he (Mr. Zuckerberg) says in the remarks. "It was my mistake, and I'm sorry. I started Facebook, I run it, and I'm responsible for what happens here."

So many tech CEOs, including Semi, need to sit down in a quiet room and reflect and repeat the same sentences.

 

[blueone]

EVERYBODY in Semi will be freezing hiring, laying off people. Proactive ones already doing it this quarter, but many more will be doing in 1H23.

TVs, mobile phones, PCs, gadgets of all kinds, none is selling or down 30-40% or more (comparing to the good times in CY20-21). The only bright spot today is automotive. But that could too change tune all of a sudden. Macro economy everybody is suffering different problems, some are natural cycles, but many are man-made with crazy policies (Biden giving out free money to everyone so nobody needs to work, Xi perpetually locks people down in the name of Covid but actually for mind control, Putin decided he wants to have fun playing with fire...).

Best example: "We didn't take a broad enough view of our responsibility, and that was a big mistake," he (Mr. Zuckerberg) says in the remarks. "It was my mistake, and I'm sorry. I started Facebook, I run it, and I'm responsible for what happens here."

So many tech CEOs, including Semi, need to sit down in a quiet room and reflect and repeat the same sentences.

Let's not get carried away. PC sales worldwide are down just under 20%:

Gartner Says Worldwide PC Shipments Declined 19.5% in Third Quarter of 2022

Worldwide PC shipments totaled 68 million units in the third quarter of 2022, a 19.5% decrease from the third quarter of 2021, according to preliminary results by Gartner, Inc.

www.gartner.com

And, as you can see, ASUS is hardly down at all. Apple has been complaining about supply chain problems for Macs for some time now, so their potential volumes are probably understated.

Worldwide smartphone sales are only down 9.7%:

Smartphone Market Suffers Fifth Consecutive Decline in Global Shipments in Q3 2022, According to IDC Tracker

IDC examines consumer markets by devices, applications, networks, and services to provide complete solutions for succeeding in these expanding markets.

www.idc.com

And Apple's was up 1.6%.

When I first read that article, the thought that came to my mind was that GF decided to do some headcount trimming at a time when they'd just be one of the trimming crowd. The stock market certainly seemed to like the announcement.

 

[Mooredaddy]

EVERYBODY in Semi will be freezing hiring, laying off people. Proactive ones already doing it this quarter, but many more will be doing in 1H23.

TVs, mobile phones, PCs, gadgets of all kinds, none is selling or down 30-40% or more (comparing to the good times in CY20-21). The only bright spot today is automotive. But that could too change tune all of a sudden. Macro economy everybody is suffering different problems, some are natural cycles, but many are man-made with crazy policies (Biden giving out free money to everyone so nobody needs to work, Xi perpetually locks people down in the name of Covid but actually for mind control, Putin decided he wants to have fun playing with fire...).

Best example: "We didn't take a broad enough view of our responsibility, and that was a big mistake," he (Mr. Zuckerberg) says in the remarks. "It was my mistake, and I'm sorry. I started Facebook, I run it, and I'm responsible for what happens here."

So many tech CEOs, including Semi, need to sit down in a quiet room and reflect and repeat the same sentences.

Way too apocalyptic of an assessment in my opinion. Many companies are still growing at above market rates even in this down cycle. What really matters is differentiation and not being in the commodity side of the business. (My opinion)