Floundering flash mem giant Spansion has received a delisting notice from the Nasdaq stock exchange. The Sunnyvale, California-based company says the notice arrived in part because of its recent Chapter 11 bankruptcy filing.
A joint venture of AMD and Fujitsu, Spansion is the world's third-largest flash maker. But its NOR flash chips - intended for cell phones and cars - are significantly less popular than the NAND flash chips manufactured by Samsung and Toshiba.
In mid-January, the company told the world it was working to restructure its balance sheet - and perhaps sell itself - amid a sinking worldwide economy. And little more than a month later, it suddenly axed over 3,000 workers, or 35 per cent of its workforce. Two separate groups of workers have since sued the company, alleging violations of the WARN Act, a US law that requires employers to provide 60-days notice before making "mass layoffs."
Workers laid off here in the US did not receive severance pay, and many have also complained that those retained by the company received pay raises amidst the layoffs. In response, former CEO Bertrand Cambou tried to return the $403,000 in severance he received after leaving the company in early February. And the company has said it will try to get jettisoned employees an extra 60-days pay through bankruptcy court.
The company also says it will fight the Nasdaq delisting. It has a requested a hearing with the exchange, and its stock will still be traded while the hearing is pending. ®