Updated December 20, 2008 12:00 AM [ philstar.com ]
BAGUIO CITY – US microchip maker Texas Instruments is slashing 400 jobs in its plant at the export processing zone here to cope with falling orders amid the global economic crunch, labor officials said.
The Dallas-based company notified the Department of Labor of its plan to seek 400 volunteers to take “generous” severance packages among its 2,300 employees in its sprawling plant here, said assistant regional labor director Sixto Rodriguez.
Apart from 400 workers, another 100 employees were to be transferred to Texas Instruments’ other plant at the Clark Freeport in Pampanga, said DOLE official Ana Dione.
“They notified us even before they discussed it with their employees,” Dione said. “Because of financial difficulties, they really could not afford to sustain their entire workforce, so they are reducing.”
Company officials could not be reached for comment. The telephone operator said all managers were on leave and could not handle queries from the media.
Dione said the company tried to cut costs when orders began falling in the third quarter, including a shortened workweek.
In 1979, TI set up its assembly and testing facility here that supplies semiconductors to clients in the US, Europe and Asia.
The company has since expanded in the Philippines, including the $1-billion plant in Clark where it will employ 3,000 people.
TI is among the Philippines’ top exporters, reaching $3.5 billion in 2006. – Artemio Dumlao, AP