MANILA, Philippines - Integrated Micro-electronics, Inc. (IMI) said yesterday it would let go of 405 workers because a client had stopped placing orders, forcing the closure of a business unit.

In a disclosure to the Philippine Stock Exchange yesterday, Ayala-led IMI said the Department of Labor and Employment (DoLE) was notified that the workers had been deemed “redundant.”

The business unit involved manufactures liquid crystal display devices and “other sub-assemblies.”

“All 405 affected employees, consisting of approximately 3% of the company’s total employment pool, will receive all the benefits that they are legally entitled to, and will be assisted through job placement programs and livelihood and entrepreneurship seminars,” the company said in its disclosure.

It added that the closure was due to the “cessation of operations” of one of the company’s customers.

IMI President Arthur R. Tan told BusinessWorld the company was able to prevent more workers from being retrenched.

“The total affected employees were over 1,000, however, we were able to absorb over 600 in other divisions that are growing. The balance of 405 was not absorbed but [was deemed redundant]. We hope that the recovery of the global market continues so that we can rehire these associates in the future,” said Mr. Tan.

The DoLE could not be reached for a comment.

Just last month, IMI was listed on the stock exchange by way of introduction, at an introductory price of P6.20.

The listing was said to be part of the company’s overall plan to expand its geographical presence and by raising capital for potential acquisitions.

Shares in IMI closed at P28.50 apiece in yesterday’s trading, an 18% drop from its previous close of P35.00 per share.

The company is a joint venture between Ayala Corp. and Resins, Inc.

IMI provides manufacturing services for the storage device, communications, industrial, consumer, and automotive electronics markets. It has manufacturing facilities in Laguna and Cebu.

IMI reported a net income of $10 million last year, a turnaround from 2008’s $17-million loss. Revenues dipped to $400 million in 2009 from $441 million in the previous year.

The company also disclosed that it would be “winding down its voice coil motor line in response to the varying demands of its diversified customer base.”

“However this does not affect IMI’s ability to deploy affected workers to its other expanding business units and is not expected to significantly impact IMI’s income forecasts for the current year,” the firm said.