GlobalFoundries, the largest U.S. chip foundry, begins layoffs and freezes hiring

GlobalFoundries (GFS.US), the largest semiconductor foundry in the United States, is starting to lay off employees and has frozen recruitment. 

The company notified employees of the upcoming layoffs on Friday but did not say when they would occur or which departments would be affected. GlobalFoundries said on an earnings call on Tuesday that it was studying initiatives to reduce operating expenses by $200 million annually. 

A spokesperson for GlobalFoundries confirmed the layoffs and hiring freeze but declined to disclose the exact number of layoffs. The spokesperson noted that the company is taking "targeted actions across our workforce." The spokesperson added that GF "had a strong third quarter and guidance for the fourth quarter is solid, but based on the current macroeconomic environment," the company is looking to control costs. 

GlobalFoundries, headquartered in Malta, New York, and controlled by Abu Dhabi's sovereign wealth fund, is among the semiconductor producers seeking funding from the U.S. government to expand domestic chip manufacturing. GlobalFoundries is joining its peers in planning layoffs and implementing hiring freezes. 

Intel recently said it would take cost-cutting measures, which reports indicate will include significant layoffs. Other chip companies, including Micron, have slowed hiring. Meta Platforms (META) has begun widespread layoffs, while companies such as Qualcomm, Twitter, Apple and Amazon have suspended hiring in many departments. 

On Tuesday, GlobalFoundries reported a 22% jump in third-quarter revenue and issued fourth-quarter sales and profit guidance above analysts' expectations. GF is trying to win share of the chip foundry market and gain enough scale to compete with industry leader TSMC.