LAST WEEK, Banking giant Wells Fargo announced it would be shutting down its Manila tech center, causing much wailing and gnashing of teeth here, particularly since the pullout will eliminate about 700 jobs. Wells Fargo’s announcement came about two weeks after mobile technology maker Nokia said it would pull the plug on its research and development (R&D) center in the UP-Ayala Technohub, which will also result in about 700 layoffs. Both companies are expected to start shedding local employees by as early as next month, and wind up operations here by the third quarter of the year.
In both cases, the explanations provided can be accepted at face value, particularly given the broader circumstances of the two companies. Nevertheless, the exit of two valuable players in the Philippines’ burgeoning tech sector are a vote of no confidence in the environment here, and should encourage policymakers to reflect deeply on why this country is becoming so uncompetitive.