Schweizer Electronic to lay off 75 in 1H/2009

The Schweizer Electronic AG has confirmed its sales targets for 30.09.2008 and surpass last year's growth for this period by over 15%. At the same time, costs could be substantially reduced and profitability significantly improved. For the full year 2008, the company expects a turnover higher than that of the previous year. However, the company also felt the impact of the global financial crisis in the 4Q/2008. Capacities will not be utilised to the full during the rest of the year. The company has therefore, discontinued temporary employment contracts and vacated positions were not filled. Additional measures included short-time work, which was implemented on November 11, 2008. Schweizer Electronic believes that the order situation will not improve during 1H/2009. On the basis of these assessments, the company sees the need to adjust the cost base to the amount of utilisation in the planning for 2009. Besides further expenditure discipline, this also means reducing personnel, of which approximately 75 employees will be affected. These measures will be based on coordination of interests and be implemented during the 1H/2009. If the order situation does not improve during the 2H/2009 - as is expected - a second phase of redundancies is to be implemented. This means that a further 75 jobs, mainly from the production-related areas, are to be cut. This was communicated to the workforce on 03.12.2008. Despite these harsh measures, the company will continue its strategic plan.