News & Analysis

Qimonda Portugal sends workers home

Christoph Hammerschmidt

4/14/2009 9:46 AM EDT

MUNICH, Germany — After having switched its production in Dresden to standby mode, insolvent DRAM manufacturer Qimonda AG now has suspended most of the worker's contracts in its backend facility in Vila do Conde (Portugal).

Like in Dresden, a core team of about 200 workers will stay and provide maintenance services as well as administration services for the insolvency administration process. The large remainder of about 800 workers has been sent off into a preliminary vacation status with reduced salaries, a Qimonda spokesperson in Munich explained. For the Vila do Conde location, the insolvency administrator pursuits much the same strategy as for the Dresden and Munich locations in that he maintains the units ready to restart activities for the case an investor surfaces.

Qimonda's Vila do Conde unit has filed for insolvency by end of March after the parent company already in January had done so. Originally, the Portuguese subsidiary had a head count of about 1600, of which about 600 have been released already, the spokesperson explained. The figure includes contract workers.

Qimonda's photovoltaics activities, also based in Vila do Conde outside of Porto, are not affected by the current job cuts, the spokesperson said.

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