TSMC is reportedly planning to cut its workforce by 5 percent in 2009. Obviously, low demand caused by the economic slowdown is to blame.

The company claims the reductions should not be viewed as layoffs, as it merely plans to evaluate employee performance more strictly and put them under more scrutiny. In the end, it still means about a thousand people will be out of a job, and that sounds like a layoff to us.

Digitimes also claims TSMC, UMC and SMIC have begun implementing measures aimed at further cutting costs, including mandatory unpaid leave.

More here.