News-Record.com

Friday's lead editorial.

Even a high-tech powerhouse like Greensboro-based RF Micro isn’t immune from the mood swings of the global economy.

But whenever a high-profile corporate citizen lays off workers it’s noted with some trepidation. Memories of once rock-solid local textile giants disappearing at the cost of thousands of jobs still are fresh. Could history repeat itself?

On Tuesday, the microchip manufacturer announced significant layoffs for the second time in a month. Corporate restructuring eliminated 200 jobs in Greensboro for a total of 350 worldwide. That comes on the heels of 80 local jobs lost as part of a move to consolidate the company’s microchip testing in China.

Earlier this year, plans to expand a local plant and add jobs were put on hold after both the state and city had provided a tax-break package to seal the deal. Instead, a British subsidiary now will do the work.
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Strategic corporate refocusing can be painful, particularly for the loyal workers who get pink slips. Thousands of downsized Piedmont workers already have taken that uncertain path. But corporate managers have an obligation to concerned stockholders to sense market trends and respond proactively.

RF Micro, begun here in 1991, has grown from a handful of employees to nearly 5,000 people around the world. It is one of Greensboro’s largest with about 2,000 workers. The company makes a specialized type of microchip for cellular phones and high-performance radio systems.
However, a constantly changing world marketplace dictates frequent fine-tuning. Staying one step ahead of the competition is the best way to stave off more draconian measures in the future.

The good news is the latest cuts don’t portend the outsourcing of jobs to China, where many cellular manufacturers have plants. In the long run, hundreds of RF Micro jobs in Greensboro could be saved.

For certain, the global economy is a two-way street. While some jobs head overseas, foreign companies set up shop here. Unfortunately, it isn’t always a fair trade-off. Laid-off RF Micro workers, for example, may not be candidates for aviation-related jobs at HondaJet.

Yet, no matter where jobs originate, it’s important to convey the message to high-tech businesses that the Triad is a good place to locate.

Setbacks such as the RF Micro layoffs will happen from time to time, but there’s no turning back the clock. Companies geared to succeeding in the ever-expanding global economy will fare far better than the traditional manufacturing sector.