Solectron to retrench 180 employees tomorrow

By DAVID TAN in Penang

SOLECTRON Corp, a leading provider of electronics manufacturing and supply-chain management services, is retrenching 180 of its non-direct operational employees effective tomorrow. 

Its senior vice-president and managing director (Solectron Asia/Pacific Operations) Joe Tang told reporters at a press conference that the company would be consolidated and downsized to meet reduced market demand, in line with following the company's broader restructuring programme. 

He said the retrenchment exercise would see job losses for approximately 180 employees. 

“We will spend RM2.7mil in the form of unemployment benefits. In the past several months, the local management team has been carefully analysing the business situation to manage the business to an optimal level.  

“However, despite all the measures taken, the continuing decline in business has left Solectron Penang with excess capacity and resources.  

“A number of other options were looked at and considered, but unfortunately, they were not viable under current market conditions.” 

Tang said the decision to consolidate its operations in Penang and reduce headcount was “driven solely by market forces which were well beyond the company’s control.” 

He said the company would continue monitoring the market situation carefully, and would make the appropriate business decisions in response to changing market conditions. 

Solectron, he said, would comply with the relevant labour laws and provide outplacement assistance. 

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