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Cypress-Spansion merger to cut 1,600 jobs

Posted: 16 Mar 2015     Print Version  Bookmark and Share

Keywords:layoff  internal memo  Rodgers 

The merger of Cypress Semiconductor and Spansion, the 18th and 17th biggest companies in the Silicon Valley sector, will result in layoffs that will cut 20 per cent of the two companies' combined employees, an internal memo obtained by Mercury News revealed.

Cypress founder and CEO TJ Rodgers sent the memo to employees revealing the plan to cut 1,600 workers across the globe. The affected individuals will have severances over the next three weeks, which will be equally given by the two companies.

Around 50 per cent of the job cuts will be immediate, while the remaining ones will be asked to stay for a little longer, Rodgers said.

Quoting from the memo acquired by Mercury News, Rodgers wrote, "Please hang in there. In just three weeks, we will be through this nerve-wracking decision-making process and ready to move on to the extraordinarily exciting future ahead of us."

When the deal was announced in December, the companies said they expected to have combined revenues approaching $2 billion and save $135 million in annual costs within three years. It became apparent within less than a month of discussions about a potential merger that "we could run the combined companies a lot more efficiently," said Rodgers, speaking in a video on the Cypress Web site.

- Rick Merritt and Stephen Padilla
  EE Times

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