Intel to shut down Cavite facility by year-end
In a memo circulated among employees of Intel Philippines, the chipmaker has finally conceded and will shut down its facilities in Gen Trias, Cavite by end of 2009.
According to a source who received the memo, Intel will no longer continue its plans to transfer its operations to Laguna (the one by NXP Semiconductors, formerly Philips Semiconductors, plant in Cabuyao as reported earlier). Intel has been taking bids and contracting 3rd party providers for the transfer but suddenly scrapped them altogether. The memo did not specifically indicate the reasons for the sudden reversal of decision.
Since April 2008, Intel has been consistently shaving off manpower in the Cavite plant and is now down by about 800 employees from 3,000 last year.
Employees are given significant severance packages amounting to 1.75x their monthly salary for every year of service. Intel’ Public Relations firm indicated that formal announcement will be made tomorrow morning.
In related news, Intel is looking at a possible loss for 1Q of 2009.