Taipei,Oct.5,2012(CENS)--According to the administration of the Central Taiwan Science Park,ProMOS Technologies Inc.and Huga Optotech Inc.have filed applications for large-scale job cuts at their factories in the industrial park.
DRAM chipmaker ProMOS is reported to cut as many as 1,300 jobs this time,retaining around only 100 workers.This would be the largest-scale job cut in the science park in a single case.
The company will begin to enforce the severance on Oct.19 step by step.
Informed sources pointed out that the company has continually issued job cut notification internally to employees ever since it plunged into financial crisis.
ProMOS executives noted that grievous operation loss and unexpected low orders made the company have no choice but to lay off idle employees.They stressed all of the unemployed staff will receive severance pay in accordance with laws.
Last year,the company registered after-tax net loss of NT$19.5 billion(US$651 million at US$1:NT$30),or NT$7.68 per share.Until August,the company had scored revenue of some NT$400 million(US$13.3 million)a month,with August revenue reaching NT$476 million(US$15.8 million),contracting 28%from the same month of last year.In the Jan.-Aug.period,the company raked in total revenues of NT$3.2 billion(US$107 million),retreating 60.81%year on year.
ProMOS executives pointed out that the massive job cut is also the preliminary step of the company's plan to transform itself into a fabless IC company,which normally employs much fewer workers than chipmakers.
Huga's cut rate is estimated at over 20%of total workforce,the minimum threshold for"large-scale job cut"in official application.The cut is a result of a 100%acquisition of the company by Epistar Inc.,maximizing the utilization efficiency of the combined resources.
