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Chunghwa Picture Tubes to lay off 2,500 employees

2019/03/11 21:45:01

Taipei, March 11 (CNA) Chunghwa Picture Tubes Ltd., a Taiwan-based maker of small and medium-sized flat panels, announced Monday a plan to lay off approximately 2,500 employees May 10, the latest move of its kind taken by the financially-strapped firm.

The company, headquartered in Taoyuan, has submitted the layoff plan to the Department of Labor of the Taoyuan City government and will carry out the layoffs in accordance with the relevant labor laws and regulations, the company said in a statement released earlier in the day.

The plan is expected to affect 2,500 staff and factory workers, which is equivalent to more than half of the company's 4,450 employees in Taiwan.

The panel maker said it applied for financial restructuring to the Taoyuan District Court Dec. 13, 2018 due to its financial troubles and the weak economy.

The workforce reduction is aimed at cutting distribution, personnel and operating costs and is one of the measures proposed in its restructuring plan, the company said.

Under the reorganization plan, the company went on, it needs to streamline its business content and reduce its idle capacity.

The city labor department said Monday that it had received the manpower adjustment plan.

It will continue to urge the company to abide by the labor laws and regulations, and help mediate negotiations between employees and management to ensure employee rights, the department said.

The layoff plan represents the latest workforce reduction at Chunghwa Picture Tubes, a subsidiary of the Tatung Co. conglomerate.

The company laid off 63 employees in December 2018 after it dismissed about 65 workers in September of that year.

(By Wu Jui-chi and Evelyn Kao)