Intel Vietnam confirms downsizing after rumors of closure

By Vien Thong   September 29, 2016 | 06:00 am GMT+7
Intel Vietnam confirms downsizing after rumors of closure
A worker arranges an Intel logo at the CeBIT trade fair, the world's biggest computer and software fair, in Hannover in this March 13, 2016, file photo. Photo by Reuters/Nigel Treblin/Files

Job cuts will not affect Intel’s $1-billion chip plant in Ho Chi Minh City, run separately by Intel Products Vietnam.

Intel Vietnam, a subsidiary of the world's largest chipmaker, has swept aside rumors that it would close its office, but confirmed that a downsizing is coming.

Media reports emerging on Wednesday said the company would call it quits and that all employees would be sacked by October 31.

Refuting the shutdown claims, Intel Vietnam has said it will continue doing business in the country but with only a small staff.

CEO Tran Duc Trung and many other employees will end their contracts at Intel Vietnam from September 30, Marketing Director Pham An Duong told VnExpress on Wednesday.

Duong himself is also named in the layoff plan, which is part of a global restructuring strategy carried out by Intel Corp.

He did not reveal the exact number of job cuts.

Local news site ICTnews quoted its sources as saying Wednesday that five employees would continue their work at Intel Vietnam. Three quit on July 30 and another seven employees would stop working from September 30, it reported.

Intel said in April that it would cut up to 12,000 jobs globally, or 11 percent of its workforce, as it refocuses its business towards making microchips that power data centers and Internet connected devices and away from the declining personal computer industry it helped found, Reuters has reported.

Intel has two companies in Vietnam, Intel Vietnam and Intel Products Vietnam. The new plan reportedly will not affect the latter, which runs a $1-billion chip manufacturing factory in Saigon Hi-Tech Park in District 9.

“The restructuring at Intel Vietnam has nothing to do with Intel Products Vietnam, which is still operating as normal in the park,” said Le Hoai Quoc, head of Saigon Hi-Tech Park.

About 80 percent of Intel’s computer chips sold worldwide are produced by the Vietnam-based plant, which employs more than 1,000 workers.

Intel Vietnam was opened in 1997 and is in charge of handling business affairs. Intel Products Vietnam was established in 2006.

Related news:

> Intel to slash up to 12,000 jobs in restructuring

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