Foxconn to lay off 1,500 in Hungary

Taiwan's Foxconn plans to lay off 1,500 workers in Hungary, more than half of its total workforce in the country, due to waning orders, state news agency MTI said on Friday.

After the layoffs, which involve a 1,000 workers in Komarom, 80 kilometres west of Budapest, and 500 workers in Debrecen, 220 kilometres east of Budapest, the contract telecommunications device maker will employ around 1,150 people.

No-one at Foxconn in Hungary was immediately available to comment.

Earlier on Friday, Suzuki's Hungarian unit said it would lay off nearly 1,200 of its 5,500 Hungarian workers as orders have dropped.

Hungary's economy is expected to slide into recession next year on falling export demand and a drop in domestic consumption, and the government estimates its economy could contract for up to a year and a half.

Several dozen firms have already announced large-scale layoffs and analysts estimate that the country's 7.7 percent unemployment rate in the August-October period may climb to over 10 percent by the middle of next year.

Source : Reuters
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]