Intel Malaysia to slash 2,000 jobs in VSS
exercise
By DAVID TAN
PENANG: Intel Malaysia is implementing a second voluntary
separation scheme (VSS) on Wednesday which is expected to involve
between 1,000 and 2,000 employees in the country.
The exercise is part of Intels worldwide VSS scheme said to
involve between 10,000 and 20,000 workers. It is also the second
VSS offered to employees within two months, the first being on July
13.
The multinational now employs about 100,000 workers worldwide
compared to 80,000 three years ago.
In Malaysia, Intel has over 6,500 workers in Penang, about 3,500 in
Kulim, and about 200 in Cyberjaya.
Intel sources said a worldwide e-mail memorandum on the forthcoming
VSS exercise was issued on Thursday in the United States by top
management to all its employees.
The memorandum stated that Intel chief executive officer Paul S.
Otellini would speak to employees worldwide via video conferencing
this Wednesday, to give details on the VSS and the number of
employees affected.
In April, the worlds largest chipmaker had forecast a significant
decline in profits this year, saying it would reduce expenditure by
about US$1bil (RM3.7bil).
The company had faced stiff competition from rival chipmaker,
Advanced Micro Devices Inc, which gained a larger market share,
particularly in the server segment.
On July 13, Intel implemented its first round of VSS which affected
about 1,000 workers worldwide, including some 200 in
Malaysia.
Otellini had then said the VSS measure was necessary as the
company's efficiency analysis revealed slow and ineffective
decision-making.
While the first exercise had involved mostly managers, the coming
VSS is expected to cover employees at all levels.
Intel sources said that some employees in the human resources,
purchasing, and logistics departments of Intel Malaysia had already
received their VSS offers. They were offered 1.5 months salary for
each year of service and three months pay for leaving on short
notice.
In the first round, Intel Malaysia offered the VSS scheme to over
200 workers, comprising mainly managers, who all took up the
offer.
No one from Intel Malaysia's public relations department was
available for comment.
