Yageo Corp (
Yageo Corp will lay off 570 employees as it holds off expanding for six months, a move that will save the company about NT$340 million (US$10.30 million) a year, the company said in a statement. The plans comes amid uncertainty in the second quarter this year over delays in its expansion plans, the company said Thursday.
Yageo will start firing workers not only in Taiwan but also at its factories in China and Holland in a bid to cut costs by 30 percent from the first quarter by the end of June, said Vincent Weng (翁啟勝), deputy manager of Yageo's business development department.
"We need to do this to guarantee we meet our profit prediction for this year," Weng said. The company predicted pretax profit this year will rise 41 percent on year to NT$7.07 billion (US$215 million). "The lay-offs are about to start." The company is dismissing workers as unemployment in the island rises to a record and the economy splutters as a result of the global slowdown in demand for computers and mobile phones.
Almost two-thirds of Yageo's staff work in the company's factories in Taiwan.
Yageo's cost-cutting measures follow the sacking of more than 1,000 workers by notebook computer makers Acer Inc (
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