Qimonda AG today announced it will "ramp down" production at its Sandston production facility, one of a series of changes that will affect 3,000 employees worldwide.

The company said in a release this morning that the shutdown, which it plans to complete by January, will "complete its exit" from the market of 200mm memory chips, which are manufactured at the eastern Henrico County facility.

The company said it will offer severance packages to the 1,200 Sandston employees who will lose their jobs. Employment counseling and benefits assistance also will be offered.

Today's announcement is another major blow for the company, which has 3,000 employees in Sandston.

The company will retain its 300mm production line at Sandston.

Qimonda has been hard hit by various economic problems in recent months.

Last month, analysts said the struggling semiconductor company, which is based in Germany, might not be able to survive. Its stock dropped 32 percent in one day in late September as rumors spread about the company's Henrico plant shutting down.

The plant in Sandston is its only one in North America.

Today's moves follow Qimonda's announcement in April that it would cut 10 percent of its worldwide workforce of 13,500 people.