Elcoteq Cuts 700 Jobs in Hungary

Finland based electronics group, Elcoteq has confirmed earlier reports in local media and will be cutting some 700 jobs in its Hungarian factory. Zoltan Krippl, communications director of the local Elcoteq unit, said a decline in orders had forced the measure which will probably affect 390 of the company's own staff and 310 contract workers.

The company currently employs around 4,000 staff in the country.

'The market is narrowing, there is an economic crisis and overcapacities and people are buying less vehicles and electronics goods,' he told Reuters, adding the company had no plans for further cuts.

In June, Elcoteq sold part of its manufacturing operations in Estonia to Ericsson for EUR 30 million. That agreement also included transfer of about 1,200 employees. The revenue generated for Elcoteq by the transferred business is less than EUR 200 million annually.

On the web: Reuters

Posted to the site on 11th August 2009