Spansion Inc. (NASDAQ:SPSN) laid off about 35% of their workforce last week and filed for Chapter 11 this week. The company has about $3.8 billion in assets and $2.4 billion in debt. The market valuation of the company right now is about $3.24 million with a current stock price of $0.02 per share. Spansion plans to restructure debt and focus on other profitable markets such as Internet protocol solutions and wireless products.
About 3,000 employees were laid off as part of the 35%. The job cuts would result in savings of about $225 million per year. Former CEO Bertrand Cambou stated on Friday that he is returning the $403,000 in severance he received because he was heartbroken about others bring laid off without severance. In 2007, Spansion had a $263.5 million net loss on $2.5 billion in revenue.
Spansion was formerly owned by AMD and Fujitsu. It was spun off in December 2005 and both of those companies remained as major stockholders in Spansion.