November 7, 2001 – Tokyo, Japan – Toshiba said it would idle 12,000 workers in its semiconductor division for two to four days in November and December in a bid to cut costs.
The layoffs at three of Toshiba’s four chip plants–in Himeji, Yokkaichi and Oita–will not affect output or earnings targets, Toshiba told Reuters.
The Yokkaichi plant, which makes DRAM chips, will undergo the longest layoff of four days. DRAM chips have been especially hard hit by the slowdown.
“We are making efforts to slash costs in our work force and to cut high volumes of electricity during those days,” a company representative said.
Toshiba’s fourth plant, on Japan’s southern main island of Kyushu, will not be affected because it is still running at 80% capacity, the representative said.
Sales and planning staff for chip-related divisions at the company’s Tokyo headquarters and other offices will also be affected. Each worker will take a 10% pay cut while off the job.
The idling is Toshiba’s first since it temporarily laid off workers during the 1974 oil shock. Last month, Toshiba said it expected an operating loss of $908.2 million.