Laying off grandma, after 23 years of dedication at Spansion
A short story of how a grandmother who was dedicated to a Silcon Valley company, Spansion, gets laid off after 23 years. The new CEO, John Kispert, talks of making tough decisions to bring costs "in line" with expectations. On the very same day, the upper level management and executives get pay raises. A week later Spansion filed for Chapter 11 to allow it "to strenghten its financial position...". Doris who is attempting to live off of unemployment has had to deplete her 401k to make her house payments.
In a company statement John Kispert, Spansion president and CEO, said "the global recession is forcing us to make this very difficult decision in order to bring our costs in line with the current expectations for significantly reduced revenues." Yet at the same time as mass layoffs, the company maintained pay increases to its upper-level management and executives. If AIG was emblematic of Wall Street’s demise fueled by its own greed, Spansion’s controversial layoffs are the symbol in Silicon Valley that greed in the new high-tech economy looks and feels a lot like the old one.
Workers took reduced hours and furlough to try and help Spansion survive.
Last year, as the company’s financial outlook became less secure, Rodriguez and her co-workers did what they could to keep Spansion running.
“We did our part to make sure people didn’t get laid off, took pay cuts, did work furloughs, everything we could to help out,” she said.
It was during a work furlough that Spansion decided to not bring hundreds of workers at the Sunnyvale branch back. “I was at celebrating my granddaughter’s birthday at Chucky Cheese when my aunt who also works there called and said, ‘check your account, I got some money from Spansion, and I think we just got laid off.’”
Where has the decency of the companies gone? Good Luck Doris!