MANILA, Philippines (AP) -- Intel Corp. said Friday 1,800 workers at its plant in the Philippines will lose their jobs when it closes this year as a part of global cost-cutting efforts amid waning personal computer demand.
Intel announced Wednesday it would cut 6,000 jobs and close several factories in Asia and the U.S.
The Santa-Clara, California-based chip-maker said underutilized factories are cutting into its margins, and were one reason the company reported a 90 percent drop in fourth-quarter profit earlier this month.
"Everyone was sad, including our executives who came all the way from the U.S. to deliver this difficult news to us," said Arlita Narag, spokeswoman for the Philippine unit.
She said the Philippine government "could not have done anything to reverse the decision" to terminate Intel's 35-year-old operation in the country.
The Philippine factory, which produces chip sets for personal computers and networking devices, will be closed later this year.
Brian Krisanich, vice president for technology manufacturing, and Robin Martin, former general manager of Intel Philippines and currently general manager for assembly and test manufacturing network, met workers on Wednesday and Thursday to give them the news, said Narag.
Apart from the Philippines, four other plants in Malaysia; Hillsboro, Oregon; and Santa Clara, California, where older-style wafers were being produced, will be shut down.
Intel's Filipino workers will be provided "transition services," including alternative livelihood seminars and training for new skills with the help of the government's Labor Department, Narag said.
Employees "in very, very select cases" will be transferred to other Intel sites if it makes business sense, she said without elaborating, she said.
Only about 20 sales and marketing staff will remain after the plant closes, she said.
No decision has been made on what to do with the factory building and its facilities, which were set up in 1996 in Cavite. Intel's first factory in the Philippines was established in 1974.
