April 12, 2001 – Milpitas, CA – LSI Logic announced it would close its Colorado Springs, CO, manufacturing facility in August.
The closure, according to LSI, is due to the “adverse economic climate and the widespread inventory correction in worldwide communications and storage markets.” Approximately 500 employees will be impacted by the closure. The company stated in a release that many of the employees will be offered transfers to LSI’s Gresham, OR, facility and the balance will get competitive severance packages.
LSI expects restructuring and other charges of $120 million to $150 million for fixed asset write-downs, severance, direct exit costs and other expenses.
The Colorado Springs facility has been in operation since 1983.