CARROLLTON, Texas -- Mostek Corp., a leading manufacturer of electronic semiconductors, announced Friday it was laying off 1,250 of the 4,000 employees at its Carrollton plant.
The layoff was effective immediately and affected all areas of the company, although the company said layoffs would be minimal in research and development areas.
Hourly employees affected by the layoffs would receive two weeks' severance pay, and salaried employees one month's pay, a company spokesman said.
Mostek, a subsidiary of United Technologies, makes semi-conductors for computers and other electronic equipment. It also makes semiconductor boards and the systems for semiconductors.
Harold L. Ergott Jr., Mostek's president and chief executive officer, said the layoffs came after an extensive review of the company's products and marketing strategy in view of intensified overseas competition and continued softness of the microelectronics market.
'We've gone through a total strategic reassessment which involved the entire Mostek management team,' Ergott said. 'We are confident the new directions we have established will put us on the road to achieving our 1982 business goals.
'There is a good long-term future for Mostek once recovery begins in the semiconductor industry.'
Mostek planned to assist terminated employees in finding new jobs with a job referral center next week and a job fair for laid off salaried and technical employees March 8.
