Compaq Taiwan to cut 5 percent of workforce

The China Post Staff

Compaq Taiwan will cut 5 percent of its workforce by the end of July, affecting some 20 employees, said CEO Ho Wei-ling, who yesterday also denied rumors that she may resign and join FarEasTone or Sparq Corporate. The layoffs, resulting from the company’s intention to restructure, will affect most employees from the administrative area, Compaq officials said, adding that the company will make new hires, although not as many as the number of workers to be laid off. New workers to be hired by the company will specialize in telecom and automated supply chains, officials said. Compaq Taiwan currently has about 400 employees. Ho said in the 20 years she has been in the information technology (IT) industry, this is the worst she’s seen it. But she predicted the industry should hit bottom soon and experience a comeback in the first quarter next year. Compaq Taiwan, which will focus on acquisitions in the next six months, is seeking to make reinvestment in infrastructure, supply chains and biotech companies, Ho said. Compaq currently has worldwide assets of US$1 billion, according to Ho. It also has a US$100 million biotech fund and another US$100 million fund for storage services, Ho said. Some of the companies in which Compaq Taiwan reinvests, including Com2b Corp. (electronic market operations) and StorageBank Inc. (storage services) are doing well, said Ho. Asia eBusiness Corp., which is an application service provider (ASP), is having a tougher time, Ho said. The company partnered with Systex and is offering improved banking services.

“We’re working on three main areas — lowering cost, finding a good business model and looking for strategic partnerships,” Ho said. Ho, who recently visited Compaq’s Houston headquarters for a company-wide meeting, said she has traveled to a number of countries researching their development in electronic markets and X2X (exchange-to-exchange) systems. She added that Com2B Corp’s electronic market operations could rank in the top five in the world according to a number of international electronic market evaluation methods.