Aapico Hitech AH Thailand Lay off Job Cut: may fire 1200 employees

Till yesterday, there were news about the top 3 US automakers in troubles and asking for a bailout package. There were reports about General Motors GM Lay off Job Cut. Then, it was followed by the reports of Automobile Dacia Romania Lay off Job Cut in Europe. Today, there is this news coming from the eastern part of the globe, about the Thailand based Aapico Hitech Plc goiong for a lay offs in the Thail automobile sector.

How many employees will be fired from Aapico Thailand Lay off Job Cut
It is reported that around 30% of the existing workforce, i.e. around 1200 employees of the 4,000 may have to quit their jobs.

What are the reasons for Aapico Thailand Lay off Job Cut?
Same old reasons as quoted by all management firms going for lay offs - reduction in demand, high cost, no business, financial turmoil and so on.

Any other business impact for Aapico Thailand ?
The General motors unit of Thailand has been closed and hence there is no fresh buying from the Aapico by the GM Motors for the parts which Aapico manufacturs. More than 90% of AH products are supplied to local vehicle assemblers such as Toyota, Honda, Isuzu, Nissan and AutoAlliance Thailand (AAT), the Ford-Mazda joint venture. Many of these have cut back production as the export outlook dims.

Which divisions of employees will be affected by the Aapico Thailand Lay off Job Cut
Non-productive senior permanent staff and the sub contract workers are the ones who would see the job cuts.

Any salary reductions by Aapico Thailand ?
Yes, the top level guys like the directors have willingly taken a salary cut. Mr Yeap himself cut his salary by 30% starting this month

AH's debt to equity ratio is 0.5 times, with a capital base of four billion baht.

In the quarter to Sept 30, AH posted a net profit of 71 million baht, up 4.36% year-on-year, as revenue rose 6% to 2.59 billion baht. Nine-month income rose 37.3% to 329.9 million baht.

Let's hope that alternative jobs are available to the affected employees of Aapico AH Thailand Lay off Job Cut.