Memory Chip Makers Look to Reduce Costs by Asking Workers to Take Unpaid Leave
Memory Chip Makers Look to Reduce Costs by Asking Workers to Take Unpaid Leave
Posted 11/05/2008 at 11:10am
| by Paul Lilly
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Memory module makers continue to suffer through what some analysts suggest is the worst the DRAM market has been in 15 years with chip manufacturers posting record high losses. To stop the bleeding, most module makers have already cut production in an attempt to drive prices back up, and while that has been met with some success in niche markets (DDR prices are up 30 percent), slumping demand paints a grim outlook for memory makers in the immediate future.
The solution? Send home your workforce without laying them off. That's essentially the strategy some Tawain DRAM and memory module makers are trying to take in an attempt to reduce operating costs, according to DigiTimes. Rather than hand out pink slips, the tech news outlet reports that chip makers are asking employees to take time off without pay.
This isn't an isolated scenario, either. DigiTimes claims that Nanya Technology, Powerchip Semiconducter Corporation (PSC), and ProMOS Technologies have all taken "measures to encourage employees to voluntarily take one work-day off per week without pay in order to help the companies reduce operating costs."
Image Credit: Nanya Technology
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yr
November 05, 2008 at 1:10pm
Sure better than
- Losing your job completely.
- Getting a pay cut and still keeping same hours.
- Losing any additional benifits from the company.
If only more companies would do this rather than lay off so many people...
Tekzel
November 06, 2008 at 7:41am
I was coming to post that same thought. Of all the available options, this one seems the most respectful to their work force, too bad most companies think of their employees as assets to be disposed of on a whim. I always wondered how many companies that go through huge layoffs could keep the employees and go forward if the entire executive staff took a sizable pay cut. But, they would NEVER do something so altrustic, of course.
nekollx
November 05, 2008 at 1:57pm
definitly agree here
"Dear employeesdue to the global finincal crisis we are forced to take drastic action. We could lay you off but we though we would present you a option to keep your jobs. Simpley choose one work day a week to take a unpaied vacation and you can continue working here at your regular rate"
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