GlobalFoundries, the company that just acquired IBM’s Essex Junction plant, said Friday it is offering retirement incentives to an undetermined number of employees across the company.
The buyouts were first reported by the Albany Business Review. Company spokespeople confirmed the “voluntary separation program” as a retirement program but declined to say how many people would be leaving the company as part of the buyouts.
They are part of company-wide “cost-savings measures to help us achieve a more competitive cost structure while our industry is in a downturn” according to James Keller, a spokesperson for GlobalFoundries.
“Each GLOBALFOUNDRIES location has a cost-savings goal and, in the U.S., this includes savings through voluntary attrition,” Keller said. “Employees who choose to take this program will receive incentives, but we won’t be discussing specifics of the offer externally.”
“This program is part of a set of measures, so there is no target number, but rather an overall savings target for each site,” Keller said.
Employees interested in accepting the buyout have a matter of weeks to decide, the company said.
There are 3,000 employees at the Essex Junction plant, which GlobalFoundries officially acquired July 1.
Despite the job reductions, the company says it’s still hiring. Representatives will attend a Vermont Department of Labor job fair on Sept. 15 at the Sheraton Hotel and Conference Center in Burlington. The company did not say how many jobs it was still recruiting for.
“It’s important to note that this is a company-wide effort – not specific to Vermont – which is being driven by global market demands,” Gov. Peter Shumlin said in a statement. “As a state we cannot control the global marketplace. Our focus is on helping any employees affected and doing what we can to ensure the success of the Essex facility.”
Lt. Gov. Phil Scott, a Republican who is running for governor, also responded to the news.
“This is another reminder that the cost of doing business in Vermont matters — to employers and employees,” Scott said in a statement. “We must work together in order to make Vermont a more affordable place to live and do business.
“The Essex Junction employees and their families have my full support, and the support of many others, during this difficult time,” he said.
This year, the state of Vermont also offered retirement incentives to save money. More than 300 state workers have applied for the program.
