Chi Mei Optoelectronics (CMO), the second largest LCD supplier in Taiwan, announced on Wednesday, December 17, 2008 that it has laid off some temporary staff due to declining demand for its LCD panels. Permanent employees numbering 35,000 as well as 17,000 staff in Taiwan were not affected according to CMO.
The company made a statement stating that the negative impact of the US financial meltdown on Taiwan’s display industry is unprecedented. “…we’ve never seen such an impact on Taiwan’s display industry in history,” according to CMO. The temporary workers that were cut had signed one year agreements and some were asked to leave before the end of the agreement.
The top brass at CMO are also sharing the pain. CMO’s top executives have taken 10% pay cuts since October. Other employees have taken unpaid leave. This will not have a material impact on CMO’s operations since LCD fab utilization rates are well below normal levels at below 60%.
[tags]Chi Mei Optoelectronics, CMO, Display Manufacturer, LCD Manufacturer[/tags]