Germany's Draxlmaier group, the biggest employer in the domestic car industry, in the first three months continued its headcount reduction programme, reaching an average number of 14,000 employees at the end of the first quarter, almost 5,000 people less than in the first half of last year.
Late last year, the group, which operates five plants in Romania, announced its headcount had been reduced from 16,000 to 18,700 persons. "(...) We're also announcing the future layoff of another 150 people at the Hunedoara plant," stated Draxlmaier representatives.
The company started the redundancy programme in fourth quarter of 2008, when it gave up half of its 2,000 employees at Codlea plant and 800 people at the plants of Timisoara, Pitesti and Hunedoara.
A three to five week period of technical unemployment followed, in December and January, for all the five plants, and a redundancy programme through which 2,000 positions were eliminated. Starting the second half, the company announced it would further reduce the number of positions at some plants and would not hire new people for the positions that are naturally vacated. "(...) We'll further adapt to changes in the economy. The current personnel fluctuation is low and we cannot speculate about future trends," Draxlmaier representatives said.
Once it started layoffs, Draxlmaier halted all investments in the plants that intensively used workforce, with just several projects due to be finalised.
Draxlmaier expects a significant turnover downturn this year, after the trend of orders in the first quarter and after failing to hit the 2008 turnover target. The company in 2008 stated the result was below budgeted levels, after having announced an 180m-euro target, up 10% from 2007. The company missed its 2007 turnover target, too.
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