EE Times is reporting that Hitachi, due to poor sales and pricing, has begun slashing its output and workforce in order to more appropriately adjust to the current econonomic conditions. The move involves shifting their current 60% load and subsequent 20,000 wafers a month down to a 30% load and only 10,000 wafers a month. The workforce cuts take away 430 permanent jobs and reduce Hitachi's total numbers of employees to 550.
Following on the heels of Hitachi's difficulties is the news that Toshiba is pulling out of the US desktop market. The employees in that division will not be let go; instead, they'll be part of a retooling and shift back to Toshiba's traditionally strongest area of sales: mobile computing.
Seems odd that certain companies are having difficulties in light of the fact that Intel can't seem to estimate properly the numbers of high end P4's they need to produce. Also, I'm told that many of the hot hardware items are currently on backorder or unavailable in the wholesale channel.
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