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CORRECTION! TP Suntech Power sets rumor straight: 800, not 4,000, layoffs - JLM Pacific Epoch (10.96 )
Jan 13 09:02 am
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All Comments by gebby »Suntech Power Laid Off 10% of Workforce, Factories Running at 50%-60% Capacity [View article]
JLM Pacific Epoch reports the co and chairman Dr. Zhengrong Shi said that the company has cut 800 employees, about 10% of its staff, reports China Business News in a follow-up to rumors that the company was laying off 4,000 employees between October and January. Shi said that the company delayed plans released in late 2008 to recruit 2,000 new employees and expand production from 1GW to 1.5GW in 2009, and that company policy is to terminate 10% of its employees annually for poor performance. Factory production has fallen from about 85% before the financial crisis to more than 50% due to lower cell and module prices, large-sale raw material purchases last August and September and extended payment periods for some clients, said Shi. Suntech has signed orders to deliver more than 800MW in 2009, including 650MW for European clients, up from a total of 500MW in 2008, said Shi.