Monday September 4, 2006
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 Intel’s 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 world’s 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.
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