AMI in Pocatello situation (home, layoffs, to buy)

[Idaho mom]

I am hearing rumors AMI may downsize, layoff, or move some operations out of state. I read the CEO is taking a $5 mil payout of her contract and will sit on the board of the new company.

Does anyone have info, insider or public, what is going on at AMI? If they go, Pocatello's economy will certainly suffer. That's a lot of decent paying, insured jobs for a city to lose if the rumors have any truth to them.

[twinprism]

As the largest private employer in Pocatello, layoffs would certainly hurt the housing market and the local economy. Might be a good time to buy a home in Pocatello after the layoffs if those happen.


I don't have any insider info, but from what I've heard the new company was interested in AMIS engineers and existing customers. The manufacturing jobs may be at greatest risk as I don't think that FAB 10 has ever reached breakeven and ON Semi already has a lot of manufacturing capability.

Shareholder vote on the merger March 12, and from what I've heard it's pretty much a done deal. Executives are already taking their severance packages and jumping ship. The new company has only said that they will "maintain a significant presence in Pocatello". Whatever that means....

I'd love hear it if anyone has more inside info.

[Idaho mom]

Thanks. I don't recall all the technical terms, but someone told us there were a few large pieces of machinery there that are duplicated in another state, so their future was up in the air. There were also two other pieces of equipment that are the only two in the world doing what they do, so they will probably stay along with the jobs to run them. I guess we'll wait and see.

If I was an employee, I'd be updating my resume just in case.

[Mtn. States Resident]

Originally Posted by Idaho mom

Thanks. I don't recall all the technical terms, but someone told us there were a few large pieces of machinery there that are duplicated in another state, so their future was up in the air. There were also two other pieces of equipment that are the only two in the world doing what they do, so they will probably stay along with the jobs to run them. I guess we'll wait and see.

If I was an employee, I'd be updating my resume just in case.

I agree. Wow, I was shocked at the $5 Million "package" the CEO got, per chance of the take over.

My understanding was originally they were going to try to do certain work at the Pocatello plant. Clearly, it appears that has changed.

It is similar to Micron in some ways. Lots of promises then jobs or research grants (like the one that just went to USU in Logan) don't stay in Idaho.

Maybe Idaho needs a new slogan: Made in Idaho, STAYED in IDAHO!

[lakotasdad]

I wouldn't worry too much about layoffs anytime soon. They are already cutting costs by removing the significant number of Directors and VPs that Chris King put in place.

AMIS offers ON a portfolio of business products that are diverse and different from other products ON, or their previously acquired companies, produce. Comparing it to Micron is not appropriate. AMIS does a large amount of custom mixed signal which, including the customer requirements and the fabs AMIS is running now, is not a matter of simply closing down a facility and moving the design somewhere else.

Keep in mind, despite what people say, AMIS runs a remarkably good profit margin with in a very challenging position of low volume, high number, products. ON Semi will be doing very good for itself just by keeping AMIS running the way it is, and then leveraging ON's volumes to help reduce the cost AMIS vendors currently charge.