More Malaysians Could Lose Their Jobs

More Malaysians Could Lose Their Jobs

More Malaysians could lose their jobs as chipmaker Intel announced its decision to cut its worldwide headcount by 12,000 or 11% of its current 107,000 global workforce.

Although Intel did not specify the geographical regions that would be affected, it is believed that its facilities in Penang and Kulim would be part of its headcount reduction exercises.

Up to 10% of the 13,500 workers in Penang and Kulim might be affected by the move, The Star reported.

According to some sources, Intel’s acquisition of Altera in 2015 had created some redundant headcount in Penang, The Star said.

Meanwhile, its Kulim facility manufactures motherboards and assembles processor packaging.

Sources told The Star that the facility could face a headcount reduction as Intel had shifted workers involved in manufacturing mature products for desktop PC to its facilities in Ho Chi Minh City and Chengdu. Doing so has resulted in greater cost savings on labour, the sources were quoted saying.

Intel, which is the world’s largest chipmaker, has strategised to venture in recent years to mobile and emerging technologies such as healthcare, wearables and other connected devices.

The company projects a lower revenue for 2016, expecting it to rise in mid-single digits, down from its previous forecast of mid-to-high single-digits.

It said it would record a pre-tax restructuring charge of US$1.2 billion in the second quarter and expected annual savings of US$1.4 billion per year starting mid-2017.

When contacted, Intel SEA public relations manager Kim Danker said the company was not providing site-specific information at this time, as it was still evaluating the plans.

“Overall, however, we expect that these actions will result in a reduction of up to 12,000 positions globally by mid-2017 through site consolidations, a combination of voluntary and involuntary departures, re-evaluation of projects, and an increased focus on efficiency in a variety of programmes,” she told The Star.


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