The manufacturer behind a key e-paper component admitted on Wednesday that rising memory costs have forced it to cut up to 200 jobs. The announcement came as part of a restructuring plan aimed at stabilizing finances amid volatile component prices. Company executives confirmed the move in a statement to local media, citing higher-than-expected expenses for flash memory chips as the primary driver.
According to financial filings, the company has seen its production costs climb by 15% over the past year. The increase follows global shortages in semiconductor supply chains, which have pushed prices for critical components upward. Analysts tracking the sector say the firm’s reliance on high-capacity memory has made it particularly vulnerable to price swings. "We had to act to protect our long-term position," said the company’s chief operating officer, who requested anonymity due to ongoing negotiations.
The cuts will affect both administrative and production roles across multiple facilities. A company spokesperson stated that affected employees will receive severance packages and career transition support. The restructuring is expected to reduce annual operating expenses by about 8%, though full implementation may take up to six months. Industry watchers note the move reflects broader pressures in the e-paper sector, where demand for low-power displays has not kept pace with rising material costs.
Shares in the company fell 3.2% on the Oslo stock exchange following the announcement. Investors have grown cautious about firms exposed to volatile tech supply chains. The company plans to focus future investments on lower-cost memory alternatives and automation to reduce reliance on expensive components.
The Norwegian government has not commented on the layoffs, but labor officials have expressed concern over the broader impact on local tech employment.
Source: tu.no