Black Thursday: Romanian factories shut down activity

The day Rolls-Royce announced it would lay-off 2,000 employees, and Peugeot cut 2,700 jobs, due to the impact of financial crisis over the car industry, in Romania, several companies idled their activity while other manufacturing facility announced new layoffs.

Sibiu, hit by crisis

More and more companies are initiating layoff plans. Yesterday was a black day for many companies whether they programmed or not the production shut down.

As the Map of Economic Crisis reveals, Sibiu is one of the most affected counties in Romania by the financial blast that swept off the global markets.

Two of the biggest Sibiu-based companies, Ambient and Concefa will cut approximately 1,000 jobs, the main cause being global economic crisis, announced the county employment agency (AJOFM), Sibiu.
Ambient’s decision to layoff 248 employees is a response to a violent crisis and to the cold season. The layoff proceedings will be carried out in December 1 – December 10 this year, said the construction material retailer.

“There are two reasons for the layoffs. The first one is that our activity is reduced in the cold season, which makes us downsize expenses , and financial crisis is the factor that quicken this process,” said Dana Modrescu, marketing and communication manager at Ambient.

In spring this year, Sibiu-based retailer announced big plans for 2008: three hypermarkets, two of them already announced, in Ramnicu Valcea and Miercurea Ciuc.

“The investment will be around 15-20 million euros. Our intention is that by the end of 2010, Ambient brand to be present in 10 cities”, had said Dana Modrescu earlier this year.

As for costs cut in the purpose of enhancing the efficiency of activity, Ioan Ciolan, majority shareholder of Ambient said “At any moment, the key objective of the company is costs management. In the current conditions, effective management of costs is vital and directly responsible for the future of the company”, said Ciolan.

Concefa cuts 700 jobs

Concefa announced massive layoff. The construction company headed by businessman Horatiu Cercel announced it will downsize 700 employees.

The collective layoff of 705 employees is periodical, until February 20 2009, the company blaming on the bad weather conditions in winter, which harden the regular course of activity.

Concefa Sibiu (COFI) is specialized in building construction and civil engineering, netting 1.1 million lei (290,240 euros) in January – September interval this year, threefold less than last year, although the company’s turnover soared 57.2%.

In January-September interval, the company’s turnover amounted to 74.38 million lei, up 57.2% from a year ago, when it reported 47.31 million lei.

Translated by Camelia Oancea

Mai multe articole din sectiunea English »