Hynix to axe 20% of overseas staff

Rest forced to take unpaid gardening leave

By Tony Smith • Get more from this author

Posted in Business, 26th October 2001 09:42 GMT

Hynix plans to make 20 per cent of its overseas workers redundant and force the rest to take 30 days' unpaid leave - all to reduce the debt-laden chip maker's costs.

The move comes a week after the company announced it had lost a massive 1.6 trillion won ($1.25 billion) for its previous quarter.

Hynix has already cut its workforce by 30 per cent this year. Around 7000 staff have gone since January through a mix of layoffs and the sale of non-core operations. The company didn't say exactly when the newly announced round of job cuts will take place and for how long the process will take.

In addition, Hynix said it will cut the number of its development teams from 281 to 187, a reduction of 30 per cent, primarily by consolidating various projects.

The enforced vacation time will be spread over the next five months, the company said. ®