Alliance Announces Cost-Cutting Measures
Alliance Semiconductor Corp. (Santa Clara, CA) announced additional cost-cutting measures to address the continued weakness in the technology sector, in an attempt to return the company to profitability.
The company announced the reduction of approximately 10 percent of its worldwide workforce. The majority of these positions are located in the Santa Clara facility. The company will offer severance packages to affected employees. Additionally, remaining employees' salaries will be reduced by 5 to 15 percent, effective October 1, 2001.
Alliance Chairman, President and CEO N.D. Reddy said, "Prolonged economic weakness and political uncertainty have caused a continued downturn in the technology market. The belief in a rapid recovery has diminished and we regret having to take these actions. However, the need to reduce our expenses and return to profitability is essential. Our decisions, particularly in regards to the reduction of workforce, have been very difficult, but we believe they are necessary."