Tech firms slash 5,000 jobs
Spansion announces 3,000 job cuts; Micron Technology to eliminate up to 2,000 positions.
NEW YORK (CNNMoney.com) -- Hit hard by the recession, two U.S.-based tech companies announced job cuts that will put 5,000 people out of work.
Spansion (SPSN), based in Sunnyvale, Calif., said on Monday that it will cut 3,000 jobs, or 35% of its total workforce, to save money for restructuring and to position itself for a possible sale.
"The global recession is forcing us to make this very difficult decision in order to bring our costs in line with the current expectations for significantly reduced revenues," said Spansion CEO John Kispert. "This action was not undertaken lightly given its impact on our employees and their families."
This global company, based south of San Francisco, would not specify how many of these cuts would occur in the U.S. The company said the cuts will initially cost $25 million but would result in annual savings of $225 million.
Micron Technology (MU, Fortune 500), based in Boise, Idaho, said it would cut 2,000 jobs by the end of August, all of them in its home state. Of these cuts, 500 will occur in the next couple of weeks.
"It's a challenging time for technology," said Micron spokesman Daniel Francisco.
The company, which has 16,000 global workers, including 7,000 in the U.S., makes memory for computers and other consumer electronics. Micron said the cuts will cost the company $50 million initially, but will result in savings of $150 million annually. 
