700 Dell workers to lose jobs

Some 700 workers of Dell Malaysia at Bukit Minyak plant in Penang will be unemployed soon as the Company will do voluntary separation scheme (VSS) exercise. The 700 include those in the operator, supervisory and managerial positions.

The decision is in line with the decision to transfer the division that manufactured notebooks for Latin America, Canada and US markets to the group’s global manufacturing network. The Bukit Minyak plant will soon only manufacture notebooks, desktops and servers for the South Asian and Australian markets.

The move would enable Dell Malaysia to be more cost-effective in its operations, reduce delivery time and enhance the quality of the products manufactured. Dell Malaysia will continue to hire for the procuring, financing, and supply chain planning departments. The VSS is expected to run from January – June 2010. According to the Dell spokewoman, all of them will be given competitive VSS packages and necessary career counselling and outplacement services will be provided.

Dell Malaysia, which has been operating here since 1995, currently has some 4,500 workers, most of them employed at the Bukit Minyak plant, and the rest at the Dell Cyberjaya Centre. After the VSS implementation, the workforce in Malaysia will be scaled down to about 3,800. In March, Dell Malaysia offered VSS packages to about 5% of its employees.

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Tags: Dell VSS, Lost jobs, vss

Category: Employer, Employment