National Semi to Workforce: "What Color is Your Parachute?"
“While it’s horrible that people are out of jobs, I think it’s good for the nation long term; I think it’s good for this industry, the semiconductor industry; I think it’s good for the valley.”
– National Semi CEO Brian Halla, March 8, 2009
To see just how badly the continuing erosion of consumer confidence is affecting the chip industry, one need only look at the pitiable state of National Semiconductor (NSM). After announcing third-quarter revenues that were down
31 percent from the previous quarter and 36 percent from the same period a year earlier, the company said today it would sack more than a quarter of its workforce. In the months ahead, National Semi will close two facilities and eliminate 1,725 jobs.
A brutal cut–so brutal, in fact, that you’d think it might compromise the company’s ability to properly service its market. Yet with current quarter sales expected to fall five to ten percent sequentially, CEO Brian Halla says it’s a necessity. “The worldwide recession has impacted National’s business as demand has fallen considerably,” said Halla. “The actions we announced today will help us remain competitive.”
And don’t forget, they’re good for the nation and for the industry… long term. For those affected by them, not so much.