Mitsumi Philippines cuts 4,400 jobs in Bataan, Cebu

ABS-CBN News

Posted at Jan 27 2009 05:49 PM | Updated as of Jan 28 2009 01:49 AM

Mitsumi Philippines Inc., a Japanese electronics firm with operations in Bataan and Cebu, has laid off 4,400 of its staff, the Trade Union Congress of the Philippines (TUCP) reported Tuesday.

Former Senator and TUCP secretary-general Ernesto Herrera said Mitsumi cited scaled down production in both facilities as the company faces plunging global sales of personal computers.

Herrera said the company recently retrenched 2,400 and 2,000 of its employees in Bataan and Cebu, respectively, and has asked the rest of its workers to avail of early retirement program.

"Management sent notices to workers, informing them they may retire in advance. They did not say how many employees they want to leave. But we suspect they want as many as possible to be disengaged instantly," Herrera said.

About 1,600 workers remain employed at the factory in Bataan, where the workers union is a member of TUCP's federation, while the work force at the larger Cebu factory in Danao City has been reduced to just 8,000.

Mitsumi is the Philippines’ 10th largest contract manufacturer and exporter of computers, computer peripheral equipment and accessories, with 2007 revenues of P4.8 billion, according to Herrera. At its peak in 2007, Mistumi’s Danao operation engaged some 19,000 workers.