Flash memory maker Spansion has announced it will cut about 3,000 jobs, or 35 percent of its total workforce. Most of the cuts will be made at Spansion's manufacturing sites, and hundreds are to loose their jobs in Austin.

"The global recession is forcing us to make this very difficult decision in order to bring our costs in line with the current expectations for significantly reduced revenues," said Spansion CEO John Kispert.

The struggling chipmaker expects $25 million charges as a result of the cuts, but it will save about $225 million a year thanks to them. Spansion stocks closed at 5 cents yesterday, following a 10 percent drop.