BAGUIO, Philippines (AFP)--U.S. high-tech components producer
Moog Inc. (MOGA) will cut staff at its Philippines unit by almost
30% as it is hit by the global economic downturn, the local labor
office said Tuesday.
Moog Controls Ltd. will lay off 293 of its 1,000 employees from
July 1, its first retrenchment since starting operations in the
northern city of Baguio 25 years ago, said Labor Department
assistant director Sixto Rodriguez.
New York-based Moog makes components for both commercial and
military aircraft, satellites and industrial and medical
equipment.
Rodriguez said the department was making sure all those who are
laid off receive the severance package promised by Moog, while
other government agencies would be provide other forms of
assistance.
In December, Texas Instruments Inc. (TXN), one of the world's
biggest semiconductor manufacturers, announced it was laying off
400 of its 2,300 workforce in Baguio due to the financial
crisis.
Other electronics firms in the Philippines have announced
layoffs, or put many employees on forced leave or half pay, as
orders for semiconductors and other components dwindled due to a
lack of demand.
Before the global meltdown kicked in towards the end of last
year the Philippines electronics industry accounted for 70% of
exports and employed more than 300,000 people.
In March, Philippine electronic exports, which accounted for
about half of total exports, declined by 33.9%.