Salcomp with temporary layoffs in Finland in 1H/2009

Salcomp’s codetermination negotiations which started at the beginning of January concerning the entire personnel in Finland have been concluded. The target of the negotiations was to find measures to adjust activities in Finland to meet the weakened demand of mobile phone chargers.

EMSIn addition, the target is to further improve customer relationship management by enhancing cooperation between sales and R&D functions through a rearrangement in the organization structure.

As a result of the negotiations, 36 people in Finland will be laid off for four weeks’ period during the first half of the year. Members of the Management Team will contribute to the adjustment measures with temporary salary cut of 5%. In addition, due to the change in the organization structure and a decrease in the amount of work, a total of four permanent and one temporary employments will be terminated. At the end on 2008, the total number of personnel in Finland was 64 people.

Due to the weak demand situation at the beginning of the financial year, Salcomp has continued to adjust production and other activities also at the plants in China, India and Brazil, amongst other things by reducing both the production personnel and office staff, cutting salaries on temporary basis and taking several other cost-saving actions.