Layoffs announced at Spansion

AUSTIN (KXAN) - Austin’s economy takes another hit as news came Monday of local tech company Spansion, planning to layoff employees. Spansion is trying to combat the difficult economic times previously with furloughs, but it was not enough. Spansion announced Monday evening they would let go of 35 percent of their global employee base, which amounts to about 3,115 employees. 1,200 people work for Spansion in Austin and it is unknown how many of those local employees will be affected by this round of layoffs.

Earlier in February, Travis County seized Spansion's property because the company owed the county more than $9 million in property taxes. The company took a $1 million penalty when it failed to pay the due taxes by Feb. 2, 2009. The company eventually paid up, though.

Back in December, the company announced a three-week furlough, or mandatory unpaid time off, for its employees as a way to avoid layoffs. More than 1,100 Spansion workers were made to take the furloughs. Despite the furloughs, now some employees will be cut.

"We are undertaking a reduction in force [Monday], but out of respect for our employees we wish to finish the process before providing any details," said Holly Burkhart, Spansion Public Relations.

Spansion's layoffs are just the most recent blow to Austin's tech industry. In November, Freescale Semiconductor laid off 138 people in Austin. Before that AMD, Dell and Sun Microsystems had also let some employees go. Chip manufacturing has dominated Austin's workforce positions for the past few years and as the industry suffers, Austin leaders said it is time to diversify the market.

"It's a huge industry," said Mike Martinez, Austin City Council Member. "That's why, as a council, we are looking at diversifying our workforce."

After nine-and-a-half years as a tech manufacturer Tony Metoyer and several co-workers were called into a meeting room.

"Two people from human resources will tell you your position in being eliminated to avoid redundancy," said Metoyer.

Tony Metoyer's company needed two people to say one thing: They no longer needed him. So, ever since then, he has spent his afternoons at Workforce Solutions.

"I've been unemployed since the first week of January, " said Metoyer. "The job search hasn't been too good, but I'm not giving up."

Workforce Solutions said there are near 2,400 people like Metoyer in the tech manufacturing industry in Austin who have recently lost their jobs.

"People who have manufacturing or advanced manufacturing backgrounds are being laid off," said Weston Sythoff, with Workforce Solutions.

Tech manufacturing jobs like those at Spansion and Freescale tend to pay well and make up 4 percent of jobs in the Austin-Round Rock area. The industry is not expected to bounce back until 2012, which could mean blows to other local industries.

"Any downsizing is going to impact not only those workers, but also ripple through the economy in Central Texas," said Mike Rollins, Greater Austin Chamber of Commercie.

Even though tech manufacturers like Metoyer have very specialized skills, other emerging companies in Austin could use those employees.

"A lot of growing industries such as solar energy and biotechnology actually require a lot of those same skills," said Sythoff.

There are many tech-related jobs that have been posted within the last two months online on Craigslist, Monster, etc. in the Austin-Round Rock area. The information in the chart below is from Richard Froeschle with the Texas Workforce Commission. Froeschle got the information from The Conference Board.

 

 

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