AMI Semiconductor to cut up to 80 jobs worldwide – Company hopes to avoid layoffs in Pocatello

AMI Semiconductor Inc. is cutting its worldwide payroll by up to 80 jobs in response to softening in the semiconductor industry.

Spokesman Arlen Wittrock said the company hopes enough employees will voluntarily accept separation packages to reach its new employment target of just more than 2,400.

The Associated Press

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"Hopefully, we’ll be able to avoid layoffs in the U.S.," Wittrock said. "But we don’t know that for sure at this time."

The reduction process will occur through October. The company, which had sales of $454 million last year, currently has about 1,100 workers at its Pocatello headquarters and operating facilities, nearly 900 at its manufacturing facilities and European headquarters in Belgium and another 500 at its sort and test facility in the Philippines.

AMI Semiconductor is Pocatello’s largest private employer.

There was no indication of how the staff reduction would affect operations there, but Wittrock said the company was still hiring engineers in Pocatello.

AMIS designs, develops and manufactures chips used in a wide range of applications, including communications, industrial, computing, automotive, military, consumer and medical products.

While the semiconductor industry is cyclical, Wittrock said the company was "still very positive about our long-term business prospects."

Two weeks ago, President Christine King reiterated the company’s projection of third quarter per-share earnings of 18 cents, but said revenues could be down as much as 4 percent from the second quarter. Improved product mix, she said, could offset the revenue decline’s impact on profits.

Business with the automotive and industrial sectors was holding up, she said, but communications, computing and medical sector sales were soft to lower.