IBM cuts employee hours at Vermont IC plants
Semiconductor Business News
07/27/2003, 1:00 PM ET
siliconstrategies.com
EAST FISHKILL, N.Y. -- Citing the IC downturn, IBM Corp.'s Microelectronics Division plans to reduce the hours for 2,400 employees working at its Essex Junction, Vt.-based semiconductor plants starting next month, according to a report from the Associated Press.
Employees at IBM's Essex Junction plant now alternate 36- and 48-hour work-weeks--or an 84-hour over two weeks. Next month, employees will start working 36-hour shifts every two weeks, according to the AP.
Earlier this month, a shortfall in sales within IBM Corp.'s loss-ridden semiconductor group prompted one research firm to scale back its forecast for the computer giant in 2003 and 2004. Despite a recent slew of foundry customer announcements, IBM's chip unit has been hurt by a "slow improvement in yields," with "demand not yet improving," according to SG Cowen Securities Corp. ( see July 17 story ).
Last year, IBM cut 988 workers at its Essex Junction plant amid a renewed push into the foundry business ( see June 4, 2002 story ). |
