According to an article in the Star-Telegram, Spansion Inc. one of the world's largest makers of chips used in digital cameras, cell phones and high-definition television, filed for Chapter 11 bankruptcy over the weekend. The company has also slashed it's workforce by 35 percent sending 3,000 employees to the unemployment line.
As the economy has contracted the demand for electronic devices has plunged, sending Spansion's revenue and profits downward. Spansion's bankruptcy comes at a time when many companies are attempting to save themselves by restructuring in Chapter 11 bankruptcy; but it is doubtful that all of them will emerge whole again. Already, some companies have been forced to liquidate in bankruptcy because they were unable to make their businesses viable. Because of what is being seen by many as an extended contraction of the economy many companies in bankruptcy will be forced to operate on a much smaller scale because they're simply is not enough customers to support them.
Bankruptcy in the business sector will mean fewer jobs for many workers who depend on the continued growth and expansion of the economy especially the technology industry. Many of these workers will be forced into foreclosure and maybe even personal bankruptcy. Fortunately, using Chapter 7 or Chapter 13 bankruptcy these jobless workers can restart their financial lives.