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Laird to cut 5,000 jobs amid slowdown in demand
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Laird to cut 5,000 jobs amid slowdown in demand
Leading electronics and technology firm Laird Plc will reduce its workforce by 5,000 employees to cope with the anticipated slowing demand for its products in the market.
The job cuts are in response to the acceleration of the slowdown in demand for the company`s products in November, while its manufacturing facilities in the US and Hungary will be closed soon.
“In the final quarter of the year, our direct labour will be reduced by about 40 per cent, or some 4,500 employees (including the normal seasonal reduction at year end), direct and indirect overhead by approximately 14 per cent, or some 500 employees,” t he statement said.
Laird, which manufactures cellular antenna and components that cut interference in electronic devices, employs around 14,500 people in operations in North America, Europe and across Asia.
Laird, whose customers include Nokia, Sony Ericsson, LG and Motorola, said further reductions in jobs may be carried out during the first half of 2009, as it would move productions to Mexico and China.
“Our manufacturing facility in Hungary is in the process of being closed, and three of our facilities in the US will be closed or downsized significantly, with production from these sites transferred to Mexico and China,” the statement added.
These actions would result in exceptional charges of up to £20 million being incurred in 2008, of which some £14 million would be cash and the remainder asset write-downs. - PTI
Source:
http://www.thehindubusinessline.com/blnus/02171920.htm
The job cuts are in response to the acceleration of the slowdown in demand for the company`s products in November, while its manufacturing facilities in the US and Hungary will be closed soon.
“In the final quarter of the year, our direct labour will be reduced by about 40 per cent, or some 4,500 employees (including the normal seasonal reduction at year end), direct and indirect overhead by approximately 14 per cent, or some 500 employees,” t he statement said.
Laird, which manufactures cellular antenna and components that cut interference in electronic devices, employs around 14,500 people in operations in North America, Europe and across Asia.
Laird, whose customers include Nokia, Sony Ericsson, LG and Motorola, said further reductions in jobs may be carried out during the first half of 2009, as it would move productions to Mexico and China.
“Our manufacturing facility in Hungary is in the process of being closed, and three of our facilities in the US will be closed or downsized significantly, with production from these sites transferred to Mexico and China,” the statement added.
These actions would result in exceptional charges of up to £20 million being incurred in 2008, of which some £14 million would be cash and the remainder asset write-downs. - PTI
Source:
http://www.thehindubusinessline.com/blnus/02171920.htm
