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| Dell to lay off 700 staff in Penang |
| Written by Regina William | |||
| Thursday, 19 March 2009 23:33 | |||
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Invest-In-Penang Bhd executive committee chairman Datuk Lee Kah Choon said InvestPenang was informed of the reduction in workforce by Dell. "We have been informed that the VSS will be for 700 of its employees in Penang," Lee said when contacted by The Edge Financial Daily. It was reported today that Dell Malaysia is offering the VSS across the board to all 5,000-odd employees in Malaysia in line with efforts to reduce its global workforce by 10% or 8,800 jobs. Dell Malaysia had confirmed that under the Malaysian initiative, the VSS had been offered to all 5,000 Malaysian staff on Penang island, Bukit Tengah in the mainland and Cyberjaya. Employees have been informed of the decision and have until the end of the month to make their decisions on whether to take up the offer. The move was said to be part of Dell's efforts to reduce its global workforce in an ongoing initiative to remain competitive by enhancing its efficiency and underlying cost structure. This action is a prudent and deliberate part of Dell's ongoing focus on competitiveness. Late last month, Dell Inc announced a 48% decline in net income to US$351 million (RM1.28 billion) for the fourth quarter of its financial year 2009 (4QFY09) from US$679 million a year earlier. Dell Malaysia said affected employees would be offered competitive severance packages, including career counselling and outplacement services and all actions will be consistent with applicable local laws and practices. During a conference call with Asia-Pacific journalists at the end of last month, Steve Felice, president of Dell's small and medium business, said the job cuts in Asia would be "minor" in the overall scheme of Dell's global operations. With a 16% decline in revenue for its fourth quarter ended Jan 30, rumours had been rife that Dell would close its facility in Penang or sell its operations to contract manufacturers. Dell is also said to have outsourced 70% to 80% of its operations in Penang.
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