Taipei, Amid weakening global demand, Motech Industries Inc. plans to lay off more than 900 workers by Jan. 28, 2019.
This decision represents a continuation of the company's downsizing efforts after announcing a cut of 60 workers or about 2 percent of its workforce in September as it copes with challenges facing the solar industry, following an earlier announcement the same month that it would terminate the employment contracts of 300 migrant workers.
In the latest layoff plan, Motech will make 916 workers redundant, including 588 at its Taoyuan plant which will be closed, while the remaining 328 work at other production bases around Taiwan, the company said.
The market has estimated that the newly announced downsizing plan will affect about 30 percent of Motech's total workforce.
Motech has been seeking to restructure its operations for the past six months, by shifting production capacity to high performance solar cells and solar cell modules, thereby targeting a niche market at a time of a weakening global market, the company said.
As the current focus is rolling out higher quality products instead of expanding production, the existing workforce is too large, so layoffs became inevitable.
Motech added that the company is grateful for the contributions made by its employees, adding that the layoffs will be carried out in accordance with local labor law and vowed to help affected workers find new jobs.
As for the 588 workers at Motech's Taoyuan plant, Taoyuan City Government's Department of Labor said it has sent personnel to help impacted workers and monitor how the company implements its layoff plan, including negotiations with the workers and compensation, in a bid to ensure employees' rights are protected.
Motech said that following restructuring, its financial situation has improved. According to the Taiwan Stock Exchange, the company's total debt as of Sept. 30, 2018 stood at NT$14.08 billion (US$456 million), compared with NT$19.02 billion on Dec. 31, 2017.
However, Motech is still in the red amid escalating competition in the global market.
In the first nine months of this year, Motech incurred NT$8.25 in losses per share, compared with NT$4.05 over the same period of last year. In 2017, the company's loss per share stood at NT$5.92 after being just NT$1.86 in 2016.
Source: Focus Taiwan News Channel