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Quanta to cut more than 100 jobs at Taoyuan plant
Central News Agency
2013-02-23 08:29 PM
Taipei, Feb. 23 (CNA) Quanta Computer Inc., the world's largest notebook computer ODM service provider, said Friday it plans to lay off 107 employees at its plant that assembles tablet computers for Canada-based Research In Motion (RIM). It is the latest in a series of layoffs by the Taiwanese company, which has cut more than 1,900 jobs at its Taoyuan plant since late 2011. Friday's announcement signals an end to Quanta's operations there, which were set up in early 2011 under a special program with RIM to produce PlayBook tablets for the Canadian company. Market analysts said the termination of the program means that RIM's tablets have failed to make an impact amid strong competition from market leaders such Apple Inc.'s iPad. Quanta said the 107 employees being laid off are eligible to six months salary in severance pay plus compensation based on their seniority at the company. Other employees in the special program are being assigned to other divisions within the company or will be given assistance to find new jobs, Quanta said. In a statement filed with the Taiwan Stock Exchange, Quanta said the cutback in its workforce is related to the special program with RIM and is not expected to have any significant impact on Quanta's operations. Market analysts said they agreed with Quanta's assessment, as the special program with RIM was just a small fraction of the Taiwan company's annual consolidated sales of about NT$1 trillion (US$33.78 billion). They noted that the announcement of the downsizing did not affect Quanta shares on the Taiwan Stock Exchange Saturday, when the broader market staged a rebound in line with Wall Street amid eased concerns over the global economy. Shares of Quanta gained 0.31 percent to close at NT$85.70 Saturday, while the benchmark weighted index ended up 0.49 percent at 7,986.89 points. (By Han Ting-ting and Frances Huang)
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