Dell offers VSS to all 5,000 workers
by Himanshu Bhatt and Opalyn Mok, The Sun
Computer giant Dell is reducing its global workforce, including the 5,000 workers at its plants in Malaysia.
A company spokesman said a voluntary separation scheme (VSS) offer has been made across the board to its operations here. Dell has three Malaysian centres, comprising two manufacturing facilities in Bayan Lepas and Bukit Tengah in Penang, and a business centre in Cyberjaya.
The spokesperson declined to reveal the number of workers the company needs to cut. It is understood that a decision will be made once the company obtains replies to its VSS offer.
It has been reported that Dell's global earnings have plummeted to its lowest levels since 2002.
The company's net income for the fourth quarter of last year, ending last Jan 30, fell 48% to US$351 million (RM1.289 billion) from US$679 million (RM2.493 billion).
In a statement issued today, Dell said the reduction in workforce was part of its "ongoing initiative to remain competitive by enhancing our efficiency and underlying cost structure".
"This action is a prudent and deliberate part of Dell's ongoing focus on competitiveness," it said.
"We recognise the impact that this action will have on employees, and are working to minimise consequences. Affected employees will be offered competitive severance packages, including career counselling and outplacement services.
"All actions will be consistent with applicable local laws and practices," it added.
The statement also stressed that Dell will continue to recruit and hire people with specifically-required skills and invest appropriately in areas that provide value to customers and enhance its capabilities.
"We are continuously reviewing our business model and taking actions that enhance our efficiency and underlying cost structure. We'll adjust accordingly and prudently to remain competitive during and after the current challenging economic environment improves."
Dell began manufacturing operations in Penang in January 1996. The Penang centre acts as the manufacturing headquarters for the Asia-Pacific region, including Japan.
When contacted, MTUC Penang branch chairman Abdul Razak Abdul Hamid said he had heard about Dell employees being laid off but could not obtain any details.
"We are very concerned with news like this and we hope that all other organisations like the Federation of Malaysian Manufacturers (FMM) will come together to provide real figures of how many people have been laid off and find ways to provide jobs for those affected," he said.
He added that InvestPenang and Penang Development Corporation (PDC) should be more involved and find ways to get replacement jobs for those who are affected instead of "sitting around comparing retrenchment graphs".
"What we really need now is for all the FMM members, InvestPenang and PDC to work together and provide jobs for those who had been laid off."
