PC vendor Asustek Computer Inc (華碩) is planning to lay off about 300 employees, despite the company reporting record-high earnings per share (EPS) last year, local Chinese-language media reported yesterday.
Asustek reported a net profit of NT$16.58 billion, or EPS of NT$21.99, on NT$350.3 billion in revenue last year.
The reports said the company, which has 10,000 full-time employees worldwide, plans to cut about 3 percent of its workforce with poor performance reviews in the second half of the year.
Asustek spokesman David Chang (張偉明) confirmed the report, but said the staff cuts are a company policy to improve manpower competitiveness.
Chang said that those facing the axe will be given a period of time in which to improve before a final decision is made on whether to let them go.
He added that any vacancies opened by the dismissals would be filled, so the number of full-time employees would remain unchanged.
However, Taipei City’s Department of Labor said that according to labor regulations, only when the employee is incapable of carrying out his or her job could the employer terminate the labor contract.
If a company fires a percentage of its workforce based on poor performance reviews to strengthen its manpower, the employer would still have to prove that the employees they fire are no longer capable of doing their jobs.