Published on April 27th, 2020 | by The GC Team0
Hisense Europe cuts 2,200 jobs due to economic impact of coronavirus
Hisense is to cut around 2,200 jobs in Europe, 1,000 of which are expected to be in Slovenia, due to the impact of the coronavirus pandemic on orders.
The company said orders at all Hisense Gorenje factories in Velenje, Serbia and the Czech Republic had decreased by a third by the end of March, and orders for April 2020 were down almost two-thirds. Orders for May and June dropped by around 25% compared to the same period last year.
The termination of around 700 workers’ employment contracts at Gorenje’s Velenje facility is in process, particularly in manufacturing as a result of the decline in orders. The business said the reduction is proportional both to jobs directly involved in the manufacturing as well as those providing support to the production process.
Hisense Gorenje Europe, whose main activity is to provide sales, marketing, financial, accounting, personnel and legal services for Gorenje d. o. o. and indirectly for the Hisense Gorenje Group in Europe, is to cut the number of employees by around 300.
The headcount reduction will also take place across Hisense sales offices in Europe.
The business said all Group companies will strive to minimise redundancies by using soft methods of staff reductions, including the disinvestment of non-core companies, outsourcing, consensual leave, retirement, etc.
“We will also focus on sales increase, speeding up the e-commerce business and other operational adjustments to ensure the survival of the company in the expected global recession, following the coronavirus pandemic,” the company said.