Chips unaffected by latest Bookham cost-cuts
Opto chip and module manufacturer Bookham Technology is to make another round of facility closures and reduce its workforce further in a bid to become profitable.
The company will close its former headquarters at Milton Park in Abingdon, UK, a move that affects around 80 employees. The decision will see Bookham s executive team, as well as its sales and administration departments, switch to Caswell, also in the UK, and the site of its 3-inch InP chip manufacturing facility.
In the US, Bookham will close two of its three current facilities in the San Jose area, with operations at the former Onetta and Ignis sites moving to the Junction Avenue headquarters acquired through the takeover of New Focus.
Bookham did not disclose the severity of its workforce reduction, and says that it is currently "in the process of consultation" with employees. However, the company has estimated that it will incur a cash charge of $4 million-$5 million for employee severance.
TriQuint Semiconductor recently said that its decision to cut 200 employees would cost it approximately $4 million.
In May this year, Bookham closed its GaAs fabrication operation in Caswell, UK, but chip manufacturing is said to be unaffected by the latest round of cuts.
Meanwhile, Bookham is accelerating the development of its packaging facility in Shenzhen, with the transfer of production to the Chinese plant expected to be completed on schedule by mid- to late 2005.
The latest round of cuts are expected to realize a saving of $6 million to $8 million per quarter after one-off employee severance and facility lease termination charges of a similar amount.
