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Old 06-16-2007, 04:08 PM
 
155 posts, read 578,315 times
Reputation: 34

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Has anyone heard about this? My brother who I just visited because we were considering moving the TX (we are now pretty much set on moving to VT) to be close to just told me that they are planning to outsource his whole dept to Singapore and that he may be facing lay off status by October. Even better they tell him that he along with the other dept managers are suppose to train these people just so they will go back to Singapore and take his job away from him. This is after working for them for almost 7 years!! Has anyone else heard about this are lay offs coming?
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Old 06-16-2007, 04:28 PM
 
Location: Maple Valley, WA
982 posts, read 3,131,812 times
Reputation: 441
Applied Materials sings a different tune in the Austin Business Journal:

Applied Materials transferring 50 Austin jobs - Austin Business Journal:

I hope everything turns out okay for your brother.
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Old 06-16-2007, 04:42 PM
 
155 posts, read 578,315 times
Reputation: 34
I hope so...when he told me this I was shocked. He has been thru MANY lay offs in the past but was never part of them because he is a Dept. Manager. I hope this really does not happen. He has 4 kids to support.... I have not been able to find any recent news or anything online about it so maybe it will not really happen.
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Old 03-27-2009, 07:13 AM
 
1 posts, read 6,713 times
Reputation: 11
My husband worked for applied for 14 years. He was then told he had to train the guys from Singapore to take his job. Now he is laid off with a family to support in this crummy economy. The CEO asked for stimulus money to keep jobs in the US. I think somebody is not being truthful.
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Old 03-27-2009, 07:26 AM
 
14 posts, read 46,515 times
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My husband works for AMAT and he told me the same about outsourcing manufacturing jobs to Singapore. Also they already had lay offs couple of weeks ago and they had VSP's in the beginning of the year. My husband seems to think there will be more lay offs even before October. Hopefuly it does not happen
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Old 03-27-2009, 08:02 AM
 
Location: central Austin
7,233 posts, read 14,385,151 times
Reputation: 3900
A reduction of 1800 has just been completed, only 250 were actually layoffs, the rest were VSP.

Note the date of the original post. Semiconductor equipment is a highly cyclical industry and we are in the midst (2009) of an unprecedented downturn in demand. Chip fabs globally are only running at 20% of capacity, not a time when people are planning to build new fabs.
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Old 03-27-2009, 10:05 AM
 
Location: Dripping Springs , TX
786 posts, read 2,572,062 times
Reputation: 237
I have to shake my head when I hear about jobs being outsourced to Singapore. That is an indication of a company who does not have it right yet. The primary driver for outsourcing jobs is supposed to be cost reduction, but the cost of living, and therefore wages in Singapore is almost the same as North America. Therefore, outsourcing to Singapore itself does not produce enough cost savings to justify the hardship imposed on the people losing their jobs. Companies have to reduce costs and get stronger, but there would be many ways to get the same minimal cost savings as you would sending jobs to Singapore. If the jobs were going to Malaysia, or China, where there is a significant difference in wage level, then that would "justify" (from a cold dollars perspective) the move.

Outsourcing to Singapore just does not make sense. And sending jobs offshore while asking for bailout money is just plain wrong.
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Old 03-27-2009, 10:19 AM
 
Location: central Austin
7,233 posts, read 14,385,151 times
Reputation: 3900
I think that the main reason for moving manufacturing to Singapore is reduction in shipping costs. Most chip fabs are now built in Asia not the US, so it makes sense to make things closer to where the customers are.

"bailout money" is for banks and financial firms whose collapse threatens the entire global economic system not Applied Materials, a company with very little debt and a strong balance sheet. No bailout money is going to Applied.

Part of the economic stimulus plan (to promote growth and reduce the number of people losing jobs) will go to alternative energy and there was some hope that stimulus money and state incentives might persuade AMAT to use Austin as a solar equipment manufacturing center (again, producing products that would be used in the US) but it is not clear that stimulus money will be used that way.
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Old 03-27-2009, 02:58 PM
 
7,423 posts, read 8,360,445 times
Reputation: 13333
Also, salaries in Singapore may be the same, but taxes and cost of benefits may be lower. Also, they probably don't have to deal with lawsuits from every Tom, Dick, and Harry. They also probably don't have to deal with things like OSHA who requires them to buy the $300 ergonomically preferred chair as opposed to the $100 one they have at Office Max. Salaries are a very small operating cost.
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