Intel to shut down Cavite facility by year-end

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.

Abe is the founder and Editor-in-Chief of YugaTech. You Can follow him on Twitter @abeolandres.

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14 Responses

  1. BrianB says:

    The severance packages should be put to good use. I’d go for a business masters degree. Some will probably try to put up a business, an undertaking that shouldn’t happen when you’re in a panic.

  2. BrianB says:

    I mean that’s 1.75 x 12 x years of service, correct?

  3. Andre Marcelo-Tanner says:

    1.75 x monthly salary x years of service

  4. wee.. talaga naman affected na ang lahat ng GLOBAL FINANCIAL CRISIS. POOR US. :(

  5. BrianB says:

    Tanner, liit pala.

  6. taksan says:

    so it’s slowly affecting us now eh?

  7. yuga says:

    @BrianB – standard is one month salary for every year of service.

  8. gen 3 says:


    The multiplier depends on the years of service you have rendered for the company. I can’t remember the exact formula that was used but there are certain brackets with certain multipliers (e.g. <4 years is x, 5-8 years is y).

    Aside from the separation pay, the retirement pay was also given even if you are with Intel for less than 10 years (it’s prorated of course). Additionally, medical benefits were extended for another year from day of separation. Workshops were also provided by Intel to prepare these employees for a new career.

    All in all i’m very much happy on how Intel treated us. I bet no other company right now in the Philippines who has laid-off their employees has done these extended effort.

  9. otoyoreyes says:

    geeez its starting to happen na .. were beginning to feel the effect of the global financial crisis..

    but were pinoy, i know malalampasan natin to.

  10. Jacobato says:

    under the law, separation package should be HALF MONTH salary, not ONE MONTH SALARY, for every year of service. the intel formula is not as simple as pegging number of months per year of service. it is a very rich package, such that you get higher multiplier if you have longer length of service.

    there was NO MEMO circulated to employees re shutting down the facilities. they were informed in a big forum which they call BUM or business update meeting, personally by one of their corporate EVPs. the memo circulated was only to advice employees to attend the big meeting.

  11. Jacobato says:

    you are sir an admirable I/T expert, but let the law be the domain of lawyers. It’s not DOLE but the Labor Code that sets the MINIMUMS, and the labor code says half-mont salary, no ifs and not buts. cheers!

  12. Batu Batu says:

    Yeah, the reason bakit nagsara ang intel sa dami ng magnanakaw dyan sa planta sa Cavite, kasapakat na ang mga caviteno sa pagpupuslit, alam nyo un di ba ?

    • …just as i suspect… a first world employer meets third world employees… have you (outside) people have any idea how hi-tech, and therefore expensive, the buildings built in Cavite? hi-tech as in hi- tech, meaning expensive… like expensive watches jewelry, gadgets…

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