Flextronics International Ltd yesterday said it was cutting manpower in its Taiwanese PC division because the firm was “reassigning impacted talent to more value-added and mission critical areas of operations” such as notebooks.
The Singapore-based company is the world’s second-largest electronics manufacturing service provider after Taiwan’s Hon Hai Precision Industry Co (鴻海精密).
“We constantly evaluate customer and human resource requirements throughout every phase of product development and manufacturing,” Flextronics said in a statement.
“In line with our previously communicated business strategy to focus on cutting-edge products, we are strategically realigning our business away from legacy computing products such as desktops to developing more exciting mobile computing products,” it said.
According to the Chinese--language MoneyDJ.com, Flextronics closed its all-in-one (AIO) PC division, whose performance had been sluggish last year.
It reported that Flextronics faced tough competition in the AIO contract manufacturing business and its major clients, Dell Inc and Lenovo Group Ltd (聯想), might consolidate orders to one single maker to cut costs.
The Chinese-language Commercial Times yesterday said Flextronics had cut more than one-third — or 50 to 100 people — of its AIO division shortly after the end of the Lunar New Year holiday earlier this month.
In July 2009, Flextronics opened a laptop design center in Banciao (板橋) of then-Taipei County (now known as New Taipei City), adding to its other facilities in Wugu (五股), New Taipei City (新北市), and Jhongli (中壢), Taoyuan County.
Flextronics purchased the PC and server manufacturing businesses of Arima Computer Corp (華宇電腦) for about US$192 million in 2007 to strengthen its research and development capabilities, paving the way for its first foray into the notebook PC contract manufacturing industry.