GlobalFoundries seeks annualized savings of $200M, cutting jobs

GlobalFoundries CFO David Reeder said earlier this week during the company’s Q3 earnings call: "For the full year 2022, we now expect total gross CapEx to be between $3B and $3.3B, impacted primarily by the well-known delays in capital equipment. Despite the delay, we are on track to meet all of our material customer commitments for the year. As we look forward, we will be working closely with our customers and partnership, and we’ll provide an update on our 2023 CapEx at the end of the year. While we have tightly managed expenses over the past year, we are nevertheless paying close attention to the uncertain macroeconomic conditions and to our customers’ recent commentary regarding 2023 demand. We are working closely with our customers to monitor demand. And as [CEO Tom Caulfield] mentioned, we are proactively containing cost and accelerating previously planned productivity initiatives. Though we are still sizing these initiatives, we expect them to deliver annualized savings of approximately $200 million, the majority of which will be in OpEx. 2Neither these savings nor any related onetime charges are incorporated in today’s guidance. We will provide you updates on these initiatives as appropriate." Bloomberg reported on Friday that the company informed its employees of impending job cuts, without disclosing when exactly the workforce reductions would occur. A GlobalFoundries spokesperson confirmed to Bloomberg that the company is making job cuts and enacting a hiring freeze, but declined to specify a number of jobs to be eliminated.