Intel Malaysia to slash more than 1,000 jobs: Report

Computer chip giant Intel is implementing a voluntary separation scheme (VSS) in Malaysia which is expected to involve between 1,000 and 2,000 employees in the country, local newspaper reported Monday.

The scheme is the second VSS offered to employees within two months, the first being on July 13, reported The Star, a local English-language newspaper.

It is part of Intel's worldwide VSS scheme said to involve between 10,000 and 20,000 employees.

Intel sources told The Star a worldwide e-mail memorandum on the forthcoming VSS exercise was issued last Thursday in the United States by top management to all its employees.

The memorandum stated that Intel Chief Executive Officer Paul S. Otellini will speak to employees worldwide via video conferencing this Wednesday to give details on the VSS and the number of employees affected.

While the first exercise involved mostly managers, the coming VSS is expected to cover employees at all levels.

Intel sources said, some employees in the human resources, purchasing, and logistics departments of Intel Malaysia have 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, said the report.

In April, the world's largest chipmaker had forecast a significant decline in profits this year, saying it would reduce expenditure by about 1 billion U.S. dollars.

In Malaysia, Intel has over 6,500 workers in Penang, about 3, 500 in Kedah, and about 200 in Cyberjaya.

Source: Xinhua