1,000 jobs lost as factory shuts down

JOBS  PHILIPPINES

Philippines - 1,000 jobs will be lost as Canadian electronics firm, Celestica closes its factory in central Philippines.

The company, which is located on Mactan island off the central island of Cebu, has announced its plans for closure at the Mactan Economic Zone. "They are shutting down their operation due to market forces," says the zone authority, referring to the plummeting demand in the electronics industry due to the economic downturn.

Celestica Philippines had implemented a four-day work week to save money and avoid layoffs, but that was not enough. The factory is expected to close by the end of August once its clearances are completed, says the authority.

The company first started operating in Mactan in 1989 as NEC Technologies, but was later acquired by Celestica in 2004. It is currently the latest electronics company in the Philippines to shut down due to weakened demand, says AFP.

Other companies like Intel has shut down its operations in Philippines, cutting off 3,000 jobs, while Texas Instruments laid off 400 workers. Other companies implemented layoffs or placed workers on shorter work weeks or forced leave.

Officials have warned that though industry leaders feel signs of recovery, around 60,000 workers in the sector might be affected by the downturn.

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