Creative Technology becomes Destructive liao

[Darth_mel]

CREATIVE Technology, the home-grown tech firm, has slashed 2,700 jobs, or almost half its total workforce, in the last fiscal year as falling demand for its products continues to hit its bottom line.

Jobs cuts were made across the board, but the bulk was in manufacturing, due to the sale of its Malaysian plant in July 2007.

The Straits Times estimates that up to 2,200 jobs have been eliminated as a result of that closure.

This came to light in the company's annual report filed with the Singapore Exchange on Wednesday.

In the report, Creative said it had about 3,100 full-time workers as at June 30 last year, or 47 per cent fewer than the 5,800 employed a year earlier.

In the previous year, Creative had cut headcount by about 800 from 6,600.

A Creative spokesman said: 'The bulk of the reduction in the worldwide workforce was due to the sale of Cubic Electronics, the manufacturing subsidiary of Creative in Malaysia, in July 2007.'

Creative sold an 80.1 per cent stake in the Malaysian facility for US$6.9 million (S$10.1 million) to a group of third-party investors as part of a move to streamline and improve its operational efficiency.

Other staff cuts were made, with about 250 coming from sales, marketing and customer support, about 180 from administrative and other areas and fewer than 50 from research and development (R&D).

Besides Asia, headcount was also significantly reduced in the Americas region, from about 640 to 280.

The spokesman said there had been no 'significant change' in headcount in Singapore, where Creative has its corporate headquarters and a large part of its R&D operations.

'We are still looking to hire more R&D engineers,' the spokesman said.

The company employs about 1,100 staff in R&D across the US, Britain and China, in addition to Singapore.

Creative had net losses of US$19.7 million for the year ended June 30, 2008.

The company, which makes MP3 players and speakers, has been hit by slowing sales of its products due to the worsening economic situation and tough competition.

Sales for the three months ended Sept30 were US$141.2 million, down from US$184.6 million for the same period a year before. Half of Creative's sales came from Europe, while the Americas and Asia made up the rest almost evenly.

In the report, Creative said it faces 'intense competition from a large number of established companies and emerging companies'.

Sales of electronic products have slumped as the economic slowdown forces consumers to cut back on spending, leading companies like Chartered Semiconductor and Philips Electronics to announce job cuts in recent months.

Creative suffered a net loss of US$32.2 million in the first quarter ended Sept 30 to follow a net loss of US$31.7 million in the three months before that.

'We will continue to reduce operating expenses as we target to reduce our losses in the uncertain market environment ahead,' president and chief operating officer of Creative Labs Craig McHugh said in October.

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[Buzzzz]

times are really bad man..

[Tiny_planet]

My relative told me that Seagate (Woodlands) will be conducting a mass retrenchment on Monday 05/Jan/09 ... most staffs were on "force" leave for the past 2 weeks liao ... lets see whether it will be reported in the papers.

[Darth_mel]

I bet more retrenchments will come after CNY.

 

Most companies won't have the heart to deliver the bad news before that.

[Buzzzz]

maybe you are right.. its really not a good time during cny to brk the news.

[Scoots]

CREATIVE Technology, the home-grown tech firm, has slashed 2,700 jobs, or almost half its total workforce, in the last fiscal year as falling demand for its products continues to hit its bottom line.

Jobs cuts were made across the board, but the bulk was in manufacturing, due to the sale of its Malaysian plant in July 2007.

 

Hmm... just thinking:

Creative SOLD the Malaysian plant right? Won't that mean that the new investors would be taking over the plant for other manufacturing puorposes... and not that ALL jobs were lost.

 

Still... it's a very gloomy year ahead...

Edited January 3, 2009 by Scoots

[Darth_mel]

So much for golden years ahead and swiss standard of living.

[Guest Julio369]

nowadays ppl use handphones for MP3, sound blaster are std factory made, PC speakers of other brand damn cheap, PSP, NDSL, plus Apple the superpower....how to compete??? and so many China brand MP3...

 

they have so many R&D and Sales/ Marketing, don't tell me they rely on the one & only man????

 

but i guess they cannot fail, or we very malu...

[Yuan]

The most fortunate group of people now are the cheng hu nang. Fortified behind solid concrete walls.

[Modykoh]

My relative told me that Seagate (Woodlands) will be conducting a mass retrenchment on Monday 05/Jan/09 ... most staffs were on "force" leave for the past 2 weeks liao ... lets see whether it will be reported in the papers.

 

 

i got a friend there also...he is worried.

[Comfy]

The most fortunate group of people now are the cheng hu nang. Fortified behind solid concrete walls.

u can also join them.. no one stopping u...

[Friendstar]

Will Creative one day close down?

[Genie47]

Hard to say. 99yr old Woolworths. British Bastion of groceries has gone bankrupt.

[Booboon]

Will Creative one day close down?

csm will go 1st b4 creative shutdown.

[Mcfguy]

Will Creative one day close down?

 

 

cannot! must rescue our national pride....but who will rescue huh?

[Iliketodrive]

cannot! must rescue our national pride....but who will rescue huh?

 

dont worry our govn will open up reserve and save them!! like what the states do. *DREAMING*

[Scion]

Creative won't close down... most probably it will be taken over...

[Friendstar]

dont worry our govn will open up reserve and save them!! like what the states do. *DREAMING*

 

 

is that also known as "LKY bailout plan"?