Intel to Cut 3000 Philippine Jobs
Intel Plant Closings
Intel has announced it will be closing several plants around the world in an effort to reduce 5000 more jobs. The Intel facility near Manila saw its work force cut from 3000 to 1800 in November of 2008.
Intel plans to close several facilities in light of slipping demand. The facility in the Philippines is one of the older plants. It is about 20 years old.
No date has been set yet. Intel Employees where notified by email that the plant would be closing. That will ruin a perfectly good day! A local spokesman at the plant however said it was not a surprise because of the earlier lay offs in November.
The employees are expected to receive their severances packages within 3 months.
The Philippines government has recently started a stimulus package to hire 1 million new workers. Hopefully this will at least ease the pain of loosing a job and increase the chances of the workers to be hired by another firm. Intel is one of the largest overseas employers in the country.
This is just one more brick in the currency market. Slowed growth can result in a stronger Philippine Peso and that would have an upward pressure on the peso. As always, there are many factors that determine market value of currency. If the Philippine Central bank decides to prop up the dollar then the dollar will rise in almost any situation. That kind of action generally will result in a devaluation at a later time. A strong dollar is good for the Philippine economy because of remittances that are sent into the country from over seas workers (OFW) and stronger exports to countries that pay in dollars.
Filed under: Expat Finances
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