Chip Maker Qimonda Unveils 3,000 Job Cuts

The company suffered heavy losses from slumping prices that at times have been greater than overall sales.

The distressed German memory chip maker Qimonda unveiled on Oct. 13 a restructuring program which will affect 3,000 jobs in a total 13,500 worldwide.

The restructuring plan should provide Qimonda with savings of about 450 million euros (US$610 million) per year from the end of 2009, the company said. Costs from the plan were estimated at 50 million euros.

Qimonda, a memory chip specialist owned by the German IT group Infineon, has suffered heavy losses from slumping prices that at times have been greater than overall sales.

The sites involved include: the company's headquarters in southern Munich, a plant in easter Leipzig, and a facility in Raleigh, N.C. Another factory in Richmond, Va. would be closed as well.

The company has also said that it will sell a stake of 35.6% that it owns in Inotera, which makes computer chip wafers to rival Micron. Qimonda expected to earn 296 million euros from the sale.

Finally, the group said that financial director Michael Majerus would leave the company "at his request."

Copyright Agence France-Presse, 2008

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