GlobalFoundries, CFO designate part ways

Dive Brief:

GlobalFoundries will not move forward with its previously announced plan to install former Amazon executive Tim Stone as its new finance chief, the chipmaker said Tuesday.
Stone, who had been slated to replace David Reeder as GlobalFoundries CFO after a transition period, agreed with the company to scrap the plan, according to a press release. The company didn’t disclose the reason for the decision, and a spokesperson didn’t immediately respond to a request for comment.
Stone agreed to leave the company effective July 11, according to the release. Reeder will stay on as CFO through the end of the year to support the selection of a replacement and “ensure an orderly transition,” the company said.

Dive Insight:

New York-based GlobalFoundries announced on May 9 that it tapped Stone to become its new finance chief. A press release at the time said Reeder would be leaving the company “over the coming months” following Stone’s transition to the CFO role. The reason for Reeder’s planned departure wasn’t disclosed.

Stone functioned as “incoming CFO” at the company for a three-month period, according to his LinkedIn profile.

In its prior announcement, the company touted Stone’s long career in corporate finance, mostly at Amazon, where he served as CFO of its cloud computing business, among other titles.

Reeder joined GlobalFoundries in August 2020, after serving as CEO of Tower Hill Insurance Group, a Florida-based provider of residential and commercial property insurance.

The May announcement coincided with news that GlobalFoundries’ revenue for its first quarter declined 5% year-over-year, to $1.84 billion.

“Similar to others in the industry, we believe that semiconductor inventories are coming down more slowly than previously expected, and that the rebalancing of demand will extend at least through the second quarter,” GlobalFoundries CEO Thomas Caulfield said during a May 9 earnings call.

The company projected at the time that its second quarter revenues would reach between $1.81 billion and $1.85 billion. That guidance remains unchanged, according to the Tuesday press release.