National Semi to cut Melaka headcount by 10%

By Matthew Mok, Malaysia.CNET.com, CNET.com
Wednesday, May 09, 2001 07:13 PM
KUALA LUMPUR--Ten percent of microchip manufacturer National Semiconductor employees at its plant located in Melaka will be laid off, out of an approximate total workforce of 2,500, a spokesperson for Malaysia confirmed Wednesday.

She pointed out however that the overall number may not reach 250 employees as there were other employees who will leave the company due to attrition and retirement. She said the company is currently offering voluntary separation scheme (VSS) to all employees across the board to achieve the 10 percent target.

The spokesperson added that the staff reduction exercise would take place over the next two weeks.

National in the U.S. yesterday warned that its revenue and earnings will fall short of Wall Street estimates and said it will eliminate 1,100 jobs, about 10 percent of its global workforce.

Although headcount at its Melaka plant will be reduced, the manufacturer--who makes microchips for telecommunications, PCs and mobile phones--said its manufacturing output would not be affected. The spokeperson, however, noted that manufacuring output had fallen by 65 per cent since September last year--the start of its fiscal 2001 second quarter--due to the economic slowdown.

Apart from the layoffs, other cost cutting measures planned at the local level will see the company introducing shorter working weeks, deferring projects in accordance to market demands, minimising employee overtime, and freezing recruitment.

Meanwhile, a spokeperson from National Semiconductor Hong Kong--the regional headquarters for the company's sales and marketing operations--said there will be minimal impact in Asia Pacific on the marketing and sales side. Most of the layoffs will be at the plant level, the spokeperson added.


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