Company like GF is missing strategy and niche to survive. Do not see how this 7% reduction and 220 million saving with help company survival other than just making stock look better at Wall Street. This is terrible but real issue that GF is struggling for short term survival as TC is trying hard to save himself by making stock look better. Once he is gone or fired, we will see totally different narrative from new ceo. I will not be surprised if sell of GF is one of key plans on new ceo agenda, given economic pressure, cost competitiveness at 14 nm and mature technologies and absence of niche or ki---r technology or driver.
With economic recession expanding in 2023, headcount reduction will be easy knob to keep making opex look better but this is highly non sustainable mechanism with consequences that not only break the trust but shake the engagement of every employee.
I do not see any other solution and looking for your thoughts.
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@1bir+1kkPVFP7
I don't think he was fired based on my intelligence in Skyworks, this guy seems to have a very unusual relationship with KC. I heard they both did fishy things in China (cue Fab11).
Yup! Globalfoundries is where people go when they have no other choice. Doors closed everywhere else. It’s the last resort for a lot of these people drummed out of more reputable semiconductor companies.
The new VP in Singapore was most likely fired by Skyworks . No self respecting senior manager of a company like sky works would join GF unless in desperate need of a job. In fact GF had a track record of hiring cast offs from companies like NXP, TI, Maxim, etc as VP or senior VP . This is the key reason we as a company are in such a mess. We are led by a bunch of buffoons.
I knew GF Singapore just hired a VP from Skyworks with no portfolio yet, there might be more hirings of VPs or SVPs not publicized.
Headcount reduction could actually help if it is targeted at the current CEO, SVP and VP of GF
GF has been supporting STEM program heavily at high schools and those smart associate engineers can be great help in long run to run mature manufacturing with much cheaper way.
I agree with the post but at the same time let us agree that GF is still one of employment provider in upstate NY after IBM sold their dying manufacturing to GF. There are lot of students coming out from local universities and community colleges that are looking for job at very low package. With GF already making changes to their mission, vision and values.. it is clear that they want to be bottom feeder low cost third tier foundry in US .. GF needs few low cost experienced and cheap engineering and associates staff to run this manufacturing as this just needs to run routine manufacturing. With most of the R& D and TD staff gone AMD projects shelved, it is clear that GF will keep targeting second source parts as long as possible. Layoff will continue as GF margins are thin but hope to see them surviving if recession is not deep. GF has done well to hold some of the experienced staff by paying them bonuses in past to buy time to get new engineers trained. They can lay off experienced ones as soon as new engineers ready to run.
Agree totally that layoff ki--s morale and engagement. Research has long shown that layoffs have a detrimental effect on individuals and on corporate performance. The short-term cost savings provided by a layoff are often overshadowed by bad publicity, loss of knowledge, weakened engagement, higher voluntary turnover, and lower innovation — all of which hurt profits in the long run.
Just watch TC’s face when stock goes below IPO prize. That will be real test of all three major stakeholders who supported the IPO. Those big guys will like to pull their money to avoid loss as per the protocol and that is potentially dangerous situation as most of the holding is still them.
Anyone knows why they did not sell GF in 2021? Probably does not matter but am curious. Was intended objective achieved?
Very detailed and in depth summary in post. That is why I come and read posts here. Thanks.
Also, as you can see, this strange and unexpected layoff has removed the curtain from Wall Street eyes as well and stock is on continuous downward journey since then. Hard for Wall Street to stomach this action when GF declared 20% opex improvement and great outlook for future quarters. This is scary too. Now GF is playing in the hands of Wall Street and with the Wall Street loosing trust in this dicey foundry which has not a single solid thing on future roadmap, matter of time when they let it go on floor. They know they 14nm is not enough to survive and most of the 14nm being second will be subject of cost war when demand drops and each foundry trying to grab the pie for survival. Even 20-30% headcount reduction will be of no use in Q2, 23.
Thanks Tom and leaders for taking GF here, where there is no path to return except going down. Your ebitda BS and feature rich BS is exposed. Find some new story fast before GF shuts its four for good.
I am in the middle of third interview and hopefully out soon. Bye friends. Run away if you can.
Globalfoundries has been dying a slow torturous death for a few years now. But make no mistake it is dying.
Great post and insight. I see GF future fighting against time and it can go south very quickly as it’s biggest white elephant could be Malta itself , which was supposed to be its savior. Bad external environment is aggravating the situation. Not seeing hope.