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Closures & Layoffs (Nov. 16-22): Layoffs Hit Sun, AMD and Other Tech Firms

A Weekly Report on Future Corporate Downsizings
November 20, 2008
In this week's issue:
We give you the latest announcements of major U.S. corporation closures and layoffs including Advanced Micro Devices, Alcoa, Amylin Pharmaceuticals, Brunswick Corp., Comsys IT Partners, Imation, Intersil, Metaldyne, MGP Ingredients, Sun Microsystems, Weyerhaeuser and additional closings in Texas, Wisconsin and Washington.

Closures & Layoffs


Advanced Micro Devices Inc. based in Sunnyvale, CA, is cutting 500 workers, or 3% of its global staff. The cuts are AMD's second big round of layoffs this year. AMD had already laid off 1,600 workers, replaced its chief executive and announced plans to spin off its factories. The job cuts will affect all AMD departments worldwide except for the company's manufacturing operations, which have roughly 3,000 employees and are being spun off into a separate company.

Alcoa will curtail an additional 350,000 metric tons per year of aluminum production beginning immediately. The cuts affect work in its Rockdale, TX, and Ferndale, WA, operations. The reductions will be phased-in beginning immediately.

Amylin Pharmaceuticals Inc. based at 9360 Towne Centre Drive in San Diego, CA, will reduce its San Diego workforce by approximately 25%, or 340 employees. The company's Ohio facility is unaffected by the restructuring. After the workforce reduction, Amylin's employee base will be 1,800 worldwide, with approximately 900 employees in San Diego.

Brunswick Corp. will transfer production of Trophy offshore fishing boats made at its plant in Cumberland, MD, to another Brunswick facility in Ashland City, TN, by the end of 2008, eliminating approximately 115 production and support positions.

Comsys IT Partners Inc. in Houston, TX, plans to relocate administrative functions primarily from Gaithersburg, MD, (9737 Washingtonian Blvd., Suite 500) and Portland, OR, (Three Lincoln Center, Suite 301, 10220 South West Greenburg Road) into its new Phoenix, AZ, customer service center facility at 2050 E. ASU Circle.

Imation Corp. in Oakdale, MN, will eliminate approximately 200 positions around the world.

Intersil Corp. in Milpitas, CA, is reducing its global workforce 9%. including the previously announced consolidation of the company's Palm Bay, FL, fabrication facilities at 1650 Robert J. Conlan Blvd. NE, which will conclude during the first half of 2009, Intersil expects to reduce its global workforce by approximately 140 employees and reduce its overall annual operating costs by approximately $12 million to $14 million.

Metaldyne Corp., an Asahi Tec company, will close its Niles, IL, plant at 6100 W Gross Point Road, effective March 31. Metaldyne put its Niles facility into discontinued operations in July to be held for sale or closure. This year it has also closed Chassis facilities in Farmington Hills, MI and Greenville, NC, and an administrative office in Plymouth, MI.

MGP Ingredients Inc. is consolidating the production of wheat proteins and starches at its facility in Atchison, KS, this month. This decision will result in the discontinuation of MGPI's protein and starch manufacturing operations in Pekin, IL, at 1301 S. Front St. The decision will affect up to 80 employees.

Sun Microsystems Inc. is cutting its global workforce aimed at reducing costs by approximately up to $800 million annually. The plan includes a reduction of approximately 5,000 to 6,000 employees, representing approximately 15% to 18% of its workforce. The cuts will include at least 200 at its campus in Menlo Park, CA, 140 in Broomfield, CO, 72 in Louisville, CO, and 83 in Burlington, MA.

Weyerhaeuser will indefinitely close its iLevel Veneer Technologies facility in Colbert, GA, at 268 Office Drive effective immediately. The shutdown will affect approximately 105 workers.

The following future closings and permanent mass layoffs were reported in Texas.
  • Celanese is discontinuing operations at its Pampa facility on Highway 60 West due its sale to Babcock & Brown. The action will affect 199 employees beginning in December with shutdown complete by June 2009. Mundy Maintenance & Services, which subcontracts work at the facility, will be laying off another 58 people.

  • Copperfield LLC plans to discontinue a substantial portion of its manufacturing operations at 7811 Hoover Drive and 201 Inglewood Road in El Paso with 91 of its 158 employees losing their jobs.

  • Flint Hill Resources will close its chemical plant at 2505 S. Grandview in Odessa and layoff 23 employees on Jan. 9.

  • Fortis Plastics LLC is closing down and laying off 90 employees at 105 N. Tower Road in Alamo by March 31.

  • Freescale Semiconductor is laying off 81 employees at 6501 William Cannon Drive West in Austin and 57 workers at 7700 W. Parmer Drive in Austin on Jan. 9.

  • Frito Lay is closing its manufacturing facility at 116 Trinity Drive in Mission this month and laying off 62 workers.

  • Mooney Airplane Co. is laying off 229 workers at 165 Al Mooney Road North in Kerrville this month.

  • Tellabs is eliminating approximately 141 positions at 18581 N. Dallas Pkwy. in Dallas by March 31, with the bulk of the layoffs occurring Dec. 22.

  • The New Release LP is laying off 98 workers at 5200 Mitchelldale in Houston on Dec. 19.

  • THQ Inc. intends to close its facility at 1501 LBJ Freeway, Suite 300, in Farmers Branch on Jan. 2 and will be laying off 57 workers.

  • Tyler Pipe at 11910 County Road 492 in Tyler is ceasing production operations at its South plant and cutting one of two shifts at its North plant for 2009, laying off 85 employees.

  • Verio Inc. is laying off 71 employees through March 31 at 1950 Stemmons Freeway, Suite 2001, in Dallas.


The following future closings and permanent mass layoffs were reported in Washington.
  • BAE Systems Ship Repair Inc. is closing down and laying off 31 workers on Dec. 19 at 3519 W. Arsenal Way in Bremerton.

  • Meridian Yacht’s/US Marine is closing down and laying off 276 workers this month at 17825 59th Ave. NE in Arlington.

  • Morning Sun Inc. (Collegiate Graphics) is closing down and laying off 162 workers Dec. 22 at 3500 20th St. East in Tacoma.

  • Seattle Times is laying off 145 workers Dec. 12 at 1120 John St. in Seattle.

  • Solid Ground is laying off 114 workers Dec. 31 at 1501 N. 45th St. in Seattle.


The following future closings and permanent mass layoffs were reported in Wisconsin.
  • ACCO Brands is closing down its Pleasant Prairie plant at 10303 80th Ave., resulting in the permanent layoff of approximately 30 employees, starting in January.

  • Ameritech Services Inc., is closing down some operations at its Network's Specialty Center at 918 N. 26th St. in Milwaukee, resulting in the permanent layoff of 85 employees by Dec. 22.

  • JW Peters is temporarily laying of 89 employees at 500 W. Market St. in Burlington through Jan. 26, but said it could not rule out the possibility that they may become permanent.

  • Linens-n-Things is closing stores in Greendale at 5300 S. 76th St. and in Brookfield at 16300 A.W. Bluemound Road, resulting in the layoff of 61 employees by Jan. 4.

  • Lorman Education Services is laying off 50 employees at 2510 and 2610 Alpine Road in Eau Claire on Dec. 30.

  • Ruan Transport will close its Single Source Transport Co. facility in Green Bay at 1970 S. Broadway, resulting in the permanent layoff of 39 employees on Jan. 6.

  • Sears plans to close its store at N 77 W 14435 Appleton Ave. in Menomonee Falls by Jan. 12, resulting in the permanent layoff of approximately 81 employees.

  • Woodbridge Group will likely be instituting a mass layoff of 70 workers at W1901 Ten Eyck Road in Brodhead by Dec. 23.


Read Closures & Layoffs First


Receive notice when a new Closure & Layoffs column is published by receiving The Watch List newsletter. The Watch List is a powerful one-two-combination of both top-down macro analysis and bottom up micro real estate news, as well as valuable leads about companies expanding and contracting and property and loan investment opportunities. It is available for free by e-mail, which is the quickest way to review all of the news in the column as soon as it is published and link directly to the news and features you want. Just e-mail me your name, title, company, company business, city, state, and e-mail address. You can reach me by clicking on the byline above or e-mailing me at Mark Heschmeyer


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