Solidigm Lays Off Workers Because of Trade Downturn

The strong state storage trade has been in a well-documented slide for the higher a part of the final 12 months now. With storage product demand from each the consumer and datacenter companies down nicely off of its highs in a notoriously cyclical enterprise, we have already seen the large three reminiscence producers – SK hynix, Samsung, and Micron – considerably in the reduction of on NAND manufacturing. And now the repercussions of this downturn are beginning to unfold to the SSD makers themselves, with Solidigm confirming that they’ve laid off workers as a result of trade downturn.

Responding to an data request from AnandTech, Solidigm, Intel’s former SSD enterprise unit that’s now managed by SK hynix, confirmed that the corporate has not too long ago engaged in layoffs. Terming it a ‘modest’ discount in headcount, the corporate disclosed that it ‘executed a modest workforce discount’ on Wednesday, however declined to offer additional particulars.

“As a result of extended downturn within the semiconductor trade and its influence on market circumstances, Solidigm has executed a workforce discount,” an announcement by Solidigm reads. “The corporate is providing assist and severance to colleagues who’re departing. We’re immensely grateful to our crew members who’ve made significant contributions whereas at Solidigm. They are going to be significantly missed.”

Solidigm isn’t disclosing their new headcount, although as of September, 2022, the company had greater than 2,000 workers in 20 areas all over the world. Earlier this 12 months the corporate closed down its branch in South Korea and employed companies to deal with its gross sales within the nation. It appears to be like like the present announcement additionally pertains to numerous enterprise, administration, advertising, and gross sales roles.

Solidigm inherited its personnel from Intel’s NAND enterprise unit, which the corporate agreed to promote to SK hynix in October, 2020. Solidigm closed the first stage of the deal in late 2021 and gained management over Intel’s NAND and SSD companies and NAND reminiscence fab in Dalian, China. Beneath the phrases of the settlement with SK hynix, Intel transferred a few of its NAND enterprise unit workers to Solidigm to function as a SSD enterprise.

At this level there has not been a public announcement of the layoffs by Solidigm/SK hynix, so it stays unclear what the complete influence to the enterprise might be. SK hynix has simply launched its Q3’2023 earnings report, the place the corporate reported web losses of two.185 trillion gained (~1.6B USD), and might be holding its quarterly convention name this night (the morning of the twenty sixth in Korea), at which level we might discover out extra in regards to the firm’s plans for his or her struggling subsidiary. Earlier reviews to AnandTech had indicated extra vital layoffs had taken place, although ‘modest’ leaves some room for interpretation.