National Semi to Workforce: “What Color is Your Parachute?”
by John Paczkowski
Posted on March 11, 2009 at 7:53 AM PT
“While it’s horrible that people are out of jobs, I think it’s good for the nation long term; I think it’s good for this industry, the semiconductor industry; I think it’s good for the valley.”
– National Semi CEO Brian Halla, March 8, 2009
To see just how badly the continuing erosion of consumer confidence is affecting the chip industry, one need only look at the pitiable state of National Semiconductor (NSM). After announcing third-quarter revenues that were down
31 percent from the previous quarter and 36 percent from the same period a year earlier, the company said today it would sack more than a quarter of its workforce. In the months ahead, National Semi will close two facilities and eliminate 1,725 jobs.
A brutal cut–so brutal, in fact, that you’d think it might compromise the company’s ability to properly service its market. Yet with current quarter sales expected to fall five to ten percent sequentially, CEO Brian Halla says it’s a necessity. “The worldwide recession has impacted National’s business as demand has fallen considerably,” said Halla. “The actions we announced today will help us remain competitive.”
And don’t forget, they’re good for the nation and for the industry… long term. For those affected by them, not so much.
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Comments
I think it is important for readers of this blog to understand that the quote from Brian Halla at the begining of this blog was not a response to the recent announcement regarding National Semiconductor’s lays-offs or earnings.
This quote was taken from a San Jose Mercury News interview published previous to the March 11th earnings announcement. Mr. Halla was responding to a question seeking his opinion on the general climate of the economy. He was not speaking directly about National Semiconductor or the March 11 announcement.
While it is true that he was quoted saying this, the quote is preseneted out of context in this posting.
Posted by Meaghan Karabatsos at March 11th, 2009 at 12:33 pmMeaghan …
The interview was published three days ago. Presumably, Halla was aware of the bad news he would soon deliver when he made that remark.
Posted by John Paczkowski at March 11th, 2009 at 1:34 pm